The Nation Newspaper

Tag: Tata

  • Tata bets on trucks for Africa

    Indian industrial group Tata says its decision to ditch manufacturing passenger vehicles and focus instead on building large commercial vehicles in SA was necessary to ensure the company was viable on the continent.

    When Tata started doing business in Africa, it made bold forecasts for the growth of its various business arms, including chemicals, technology, hospitality and power generation. In SA, executives predicted great things for Tata cars and bakkies. As one brashly declared: “Our attitude is to go big or go home.”

    They went home. Despite partnering with a local import group, light-vehicle sales made little headway and Tata withdrew from the market in 2017. “We had the wrong products for this market,” admits Tata Africa Holdings CEO Len Brand. “It was a mess.”

    Since Brand became CEO in August 2016, Tata Africa has shed almost all its activities except trucks and buses and now manages them from India. “We can be a conduit for them in Africa but it’s for them to take it further,” he says. “We still have a couple of Raj hotels in our portfolio but otherwise we are sticking to what we know and what we do best,” Brand says.

    “Best” wasn’t always very good. Truck sales were healthy but after-sales service wasn’t. “Availability of spare parts was poor,” Brand says. “If you broke down, you were in trouble.” Many first-time customers did not come back a second time.

    Brand has concentrated on that side of the business in the past three years. Parts availability has improved considerably. “We are now fanatical about keeping you on the road,” he says.

    Or on the dirt. Tata trucks are aimed at customers less concerned with technological innovation than with a durable, robust vehicle for African conditions. The Tata-owned brand Daewoo is for more upmarket customers.

  • TATA, IPI unveil 200th locally assembled truck

    Tata Africa Services (Nigeria) Limited and Iron Products Industries (IPI) Ltd have rolled out the 200th locally assembled vehicle.

    Tata’s Head of the Auto Division, Suraj Prakash, said the firm would continue to pursue a local content programme that would ensure competitive pricing.

    Prakash said: “TATA Motors has a strong presence in Nigeria with investment of over 10 million dollars. We started assembly in 2016 which was well received by Nigerians. Our vehicles are well assembled and cost effective and it is better. Our vehicles are durable, up to standard and made for the Nigerian terrain. We will like to have more of government’s support on automobile policy because importation of tokunbo (second-hand) vehicles is of great disadvantage. Our vehicles are not expensive because most of the materials are sourced locally, so the cars are cost effective.”

    IPI Managing Director Nunu Diwan boasted that his company is the leader in steel fabrication in the country.

    Noting that the plant assembled about four TATA trucks daily, Diwan said the capacity could be increased if the need be.

    He hinted of plans to move from assembling of the vehicles to actual manufacturing by sourcing most of the components locally.

    “We are targeting manufacturing, not just assembly. By next year, 40 percent of the TATA trucks available in the market will be locally made,” he said.

    Nigerian Automotive Design and Development Council (NADDC) Industrial Infrastructure Director Abdulwaheed Odetoro, praised President Muhammadu Buhari’s administration for retaining the auto policy initiated by the previous regime.

    Odetoro assured that government will continue to support and protect locally manufactured vehicles.

    He said: “In the past, what we had was policy somersault, but now the government has put up a bill passed by National Assembly and waiting for the President’s assent. Once it is signed, the core operators in Nigeria will be protected.

    “The country is appreciative to those who have faith in Nigeria because manufacturing is key to economic development. We need to transform the sector from import dependent to full-scale manufacturing with realisation of technology transfer to indigenous experts in the industry.”

    In a symbolic gesture, the dummy key to the 200th TATA truck was presented to one of the brand’s loyal customers, Cobil Nigeria Limited.

     

  • TUC, TATA clash over union chief

    Automobile giant TATA Africa Services Nigeria has drawn the ire of Labour over the fate of Comrade Joseph Ogunyemi, Transport Equipment and Allied Senior Staff Association (AUTOBATE) deputy president.

    The Trade Union Congress (TUC), in a statement by its President, Comrade Bobboi Kaigama,  described as mischievous  TATA’s  disclaimer that Ogunyemi is no longer in the firm’s services even though he has not been served with a letter of termination.

    “Besides, the cause of his victimisation is still being mediated, and the Congress is still expecting a response to its petition from TATA regional office in South Africa,’’ TUC said.

    According to the TUC,  Ogunyemi was a former Chairman of AUTOBATE, TATA Branch and the Deputy President of AUTOBATE.

    Kaigama said Ogunyemi is now being persecuted by TATA under the guise of redundancy. He said  meetings were held at TATA and the Federal Ministry of Labour to resolve  the issues  yet the company in Nigeria is bent on ensuring Ogunyemi loses his job.

    According to the Congress, labour is interested in Ogunyemi’s matter because he has suffered so much over the years just because of his participation in trade union activities as chairman of the Senior Staff union of TATA then. He was also denied promotion, bombarded with queries, transferred to Port Harcourt and denied several benefits.

    “The union and management of TATA have had a long-running battle, prompting the Federal Ministry of Labour to intervene. We recall that at one of our meetings in June 2015, TATA management made a commitment never to witch-hunt union officers. We are, however, surprised that less than one year after, the HR manager has resumed another onslaught.

    ”The Congress wishes to let TATA management know that the same way TATA Nigeria was licensed to operate in Nigeria is equally the same way trade unions are duly backed up by Trade Union Act of 1973, CAP 437, Laws of the Federation of Nigeria to operate as a watchdog in workplaces. Our members cannot just be victimised on the account of their lawful union activities,” the statement said.

    In a related event, the TUC, Rivers State chapter, has endorsed the Joint Health Sector Unions (JOHESU) University of Port Harcourt Teaching Hospital (UPTH)  strike, asking the management to accede to the workers’ demands.

    Speaking after the State Executive Council meeting, the President,  Comrade Hyginus Chika Onuegbu, urged the management   to desist from intimidating JOHESU with ‘no work no pay’ and seek an amicable resolution of the dispute.

    “The State Council hereby warns that if the issues are not resolved amicably it will not hesitate to direct all its affiliates in Rivers State to withdraw their services,” he said.

  • TATA to invest $8million in Nigeria’s auto industry

    TATA to invest $8million in Nigeria’s auto industry

    TATA Motors Limited has invested over $8million as part of preparation to assemble the first batch of made in Nigerian cars with subsequent exportation of automobiles to other parts of Africa.

    The Regional Manager, TATA, Kshitij Verma gave this hint during a meeting between the company and the management of National Automotive Council (NAC) in Abuja at the weekend.

    According to him, the target of the company is not just to start assembling of automobiles but also for export market.

    “The idea is to establish an assembly plant In Nigeria as a sub regional centre where vehicles will be manufactured for exportation,” he said, adding: “Already the company has employed over 240 Nigerians many of whom are currently undergoing training in India, they have already installed a factory which is sited on a large expanse of land measuring about 130 hectares at Ijebu Ode.”

    In his remarks, NAC DG, Aminu Jalal observed that the coming of TATA and other foreign auto companies is an expression of the confidence of global investors in the potential of nation’s auto industry.

    NAC boss, while noting that the demand of wholesale vehicle import which runs into trillions of naira annually is not sustainable, said: “The automotive demand in foreign exchange is the second largest on Nigeria’s reserves there is an urgent need to reduce it.”

    He was however quick to commend current efforts aimed ensuring the local content in the manufacturing of vehicles.

    “Unlike the previous attempts in automotive development in Nigeria which was undermined by badly managed trade liberalisation policy, the present attempt is characterised by the involvement of local entrepreneurs with experience in the motor industries.”

    NAC, he stressed, “has the competence to ensure that Nigeria is not short-changed in this strategy to diversify the Nigerian economy adding that sustenance of the automotive industry is critical in this regard.”

  • Tata secures tractors’ distribution rights

    Tata Motors Nigeria has secured the distribution rights to sell and distribute the American John Deere spec brand of farming tractors.

    The range includes harvesting machinery equipped to promote agriculture and help farmers plough and work on their farm lands with ease.

    Manging Director of Tata Nigeria, Mr Sundeep Ray , said the tractors are fast emerging as a leading player in the market, providing stiff competition to established names.

    With features such as rugged chasis and bigger loader basket, he said the tractors, which are competitively priced, are gaining popularity among farmers.

    He said the company wil give farmers, contractors and other rural businesses a flavour of improvements to the services it provides.

    Tata, which said it, will provide nationwide service and dealership of the equipments is optimistic that its packages will promote joint ventures between the state governments of farming states and farmers cooperative societies.

    Ray said that the company is working on facilities of easy instalment payments and urged farmers to key into the initiative for the development of the country.

    He also assured that the John Deere brands are cost effective and with all the trappings of competitive prices through the finance schemes that come with the package.

    It also plans sales and distribution of top agrochemicals and agro materials to aid farmers in their cultivation.

    He said:“We are here to provide solutions and improve productivity and to add value to the knowledge of the farmers.

    “Tata guaranteed its prospective clients of the availability of all the machine spare parts for easy servicing.”