India’s Tata Motors has just announced on Thursday that it will open a brand new vehicle plant in South Africa. It will produce commercial vehicles and passenger vehicles, which are South Africa’s biggest export.

Tata Motors is India’s one of the largest vehicle manufacturer and is now hoping to expand its success in other parts of the world. The vehicle assembly in South Africa is expected to begin later this month.

The demand for new vehicles in South Africa appears to be on the rise, which is why Tata Motors chose to expand there. The new sales of vehicles in South Africa were up nearly 13 % to 44,880 in June.

Tata Motors has decided that it will use its commercial vehicle network to stock and sell selected passenger vehicle products to people from smaller towns and cities that would not be covered by passenger vehicle dealerships. Those selected passenger vehicle dealerships will be able to stock and sell relevant commercial products not covered by commercial vehicle network.

A spokesperson from Tata Motors stated: “Tata Motors is one company so why not utilize its strengths in the two segments – commercial and passenger vehicles?”