Mahindra And Tata In Trouble? » MotorOctane

The recent FTA has been quite beneficial for many car manufacturers. And two such automakers are Mahindra and Tata. This deal specifically protects some of its SUVs, such as the XEV9E, Nexon.ev, and BE6. But now both these manufacturers are facing some trouble, and here is what you should know about it.
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What Are We Talking About?

Mahindra has seen healthy success in global markets with some of its SUVs, especially in South Africa. Mahindra’s XUV3XO, XUV700 and Scorpio N have received a solid response in South Africa. Its pickup trucks have received an even better response. In South Africa, Mahindra even cracked the top 10 in sales last year. Even Tata has tried their hand in this region. The Curvv, Punch, Harrier and Tiago are sold as imports in South Africa. And now both automakers are facing trouble in this market. 

Last year, Mahindra sold 18,100 units, which is an improvement of more than 5,000 units over 2024. Furthermore, Mahindra’s pickup trucks are so popular in South Africa that the Global Pik-up offers 4 special editions, designed for rough, difficult terrain. Mahindra’s affordability is a major reason why its cars are doing well in those markets. 

However, the South African government is considering raising tariffs on Indian and Chinese car imports from 25% to 50%. Over the past four years, Indian imports have risen by a whopping 135%. The recent success of Indian manufacturers in South Africa has forced the government to take action to protect the domestic market. With this move, Mahindra would need to raise prices, which would definitely harm its great run in South Africa. Moreover, it would hurt Tata’s chances to get a grip in that market. 

Also Read: Best Selling SUV Is Now Rs 1.41 Lakh Cheaper!

Future Plans

Both these manufacturers also sell commercial vehicles in South Africa, and if these tariffs are officially placed, it will definitely hurt the sales. The tariffs being doubled are a clear move by the South African government to stall Indian manufacturers’ success in its country. These tariffs have only been applied to imports from India, so unless these manufacturers set up plants in this region, things look bleak for them.

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