Tata Changes the Face of Truck Parts Distribution in South Africa

Tata International Africa has become the first company in Africa to introduce a best-in-class standard warranty of five years on its entire Medium, Heavy and Extra Heavy Commercial Vehicle range. This first-of-its-kind Pan African five-year warranty applies to the full range of Tata Trucks and Buses as well as Daewoo Trucks in all 12 markets in which Tata International Africa operates. Len Brand, CEO of Tata International Africa says the introduction of a five-year driveline warranty on the commercial vehicle range reinforces the company’s commitment to enhancing the customer ownership experience. “We are extremely pleased to offer five-years of assurance on our range of commercial vehicles, while reiterating our commitment to the quality of our products,” says Brand. “Given Africa’s harsh and varied terrains, this new warranty goes a long way towards Tata International Africa’s pursuit of offering enhanced lifecycle benefits to its customers. So, whether a customer is in Kenya, Zambia or Ghana, or any other country in which we operate, they will have the same experience and benefits in terms of the warranty. “We are customer obsessed and our Uptime strategy is bearing fruit. Four years ago, we identified the components that we knew were imperative to the growth of our business. The final dream was to be the most sought-after distributor for commercial vehicles in Africa. We have been building towards that, with excellent work on improving the parts and service side of our business. “We’ve worked equally hard on our network, expanding our footprint dramatically, especially in South Africa, where we have over 90 touchpoints. We’ve also added new products, working with our OEM partners, to ensure that we are able to provide products for specific niches.” The five-year warranty is applicable to all Tata and Daewoo commercial vehicles first registered on or after 1 January 2021, and is supported across Tata International Africa’s extensive dealership and service network including over 450 touch point outlets and service facilities across the continent. An added benefit is that if a customer needs to sell the vehicle, they will enjoy a higher resale value and the warranty is transferrable to the next owner. A warranty of such magnitude gives the customer assurance that the product is robust, reliable and durable. Tata International Africa has also been successful in rolling out retail financing arrangements in six African markets. “We started this journey two years ago, and we’re thrilled to offer retail financing to our customers in so many African countries. Rest assured, six is not the end of this journey. We are planning to roll this out in all 12 countries in which we operate,” concluded Brand. Tata International Africa operates in South Africa, Ghana, Kenya, Ivory Coast, Malawi, Mozambique Nigeria, Senegal, Tanzania, Uganda, Zambia and Zimbabwe.

Two and half years ago, Tata International signed an agreement with Afgri Ghana to buy the distribution rights for John Deere agricultural equipment. The success and growth in selling and supporting the full line of John Deere products in Ghana as well as other African countries has resulted in a new strategic decision to invest in Zambia. Tata Zambia has acquired the full distribution rights of John Deere products from Afgri Equipment in that country and will be operational as of 01 June 2021. “We are very proud to have been given this opportunity and thank Afgri Equipment for this. We are also grateful to John Deere for showing confidence in us to represent the brand in another country on the continent,” says Len Brand, CEO of Tata International Africa. “Our initial focus will be on parts availability and swift delivery of parts to customers, as well as products fit for purpose. Our deep customer understanding and focus on delivering customer value defines the way we do business, and our resourceful team is willing to go the extra mile to deliver proficient services,” he adds. Tata’s commitment to the John Deere brand and its customers in Africa was recently recognised by John Deere Africa Middle East when Tata’s Ghana operation was awarded John Deere Africa’s prestigious 2020 Dealer of the Year Award for the category of dealers outside the SADC region. “In addition to this award, which means a great deal to us, we have made successful inroads in winning market share as a new player in the industry, which is extremely encouraging. Our commitment to customer support through our Uptime strategy has benefited John Deere owners in Ghana and other countries in which we operate and we are looking forward to replicating this in Zambia,” adds Brand. “Tata Africa has proven time and again that it is a leading company to be aligned to, not only as a distributor or dealer for OEMs, but also as a premium supplier and dedicated aftermarket support and service to our retail customers in Africa. We are committed to the company’s vision of building and sustaining relationships with cooperation and trust,” concludes Brand. Tata has operated successfully on the African continent for more than 40 years, having commenced operations in Zambia in 1977 when Tata Zambia was created, a business mainly involved in the import of Tata vehicles into the country, along with marketing and after-sales services. Tata International Africa in Zambia now sells, supports and distributes Tata trucks and buses, Daewoo Trucks, Jaguar Land Rover vehicles and now proudly adds John Deere Agriculture Equipment to its offering. John Deere construction equipment will be introduced in Zambia in the third quarter of 2021.

Many have tried, many have failed. Doing business in Africa requires a shift from a typical mindset, and while the word ‘risk’ is taboo among the world’s most prominent money lenders, there are ways to strategically mitigate uncertainties when it comes to credit in African markets. Based on Tata International Africa’s successful retail finance solution in African countries including Tanzania, Kenya, Nigeria, Ghana and Zambia, the group has now made its unique retail finance offering available in South Africa. “The financing of heavy commercial vehicles, construction equipment and agricultural machinery presents its own unique set of challenges in Africa. The introduction of a captive retail finance solution has afforded some leeway in the way credit is provided,” says Len Brand, CEO and Managing Director of Tata International Africa. “We have now applied our successes across the continent to offer a unique solution in the South African market. AFCL was established to provide short to medium repayment terms for customers acquiring assets from Tata distributors and dealers. With its understanding of customers’ needs, AFCL offers convenient and flexible solutions and finance products, specifically designed to address the challenges of securing finance, with the added benefit of a quick response time. “Our new finance offering is based on the fact that traditional lending models don’t always support good opportunities for growth in African markets. We now have a solution that comprises products with the ability to finance them, making this a compelling proposition for businesses in Africa,” adds Brand. AFCL is the exclusive and preferred credit provider to Tata International Africa, offering a wide range of finance solutions including leases to acquire a wide range of vehicle types. As an independent captive funding house, AFCL’s focus is on financing Tata and Daewoo trucks and buses. The company prides itself on setting an industry standard by providing a fast and simple application process with flexible payment terms for its customers. AFCL aligns its financing solution with the customer’s needs by offering affordable repayment terms that fit the cash flow cycle of that customer. “It is not a one size fits all approach,” says Brand. “We are obsessed with serving our customers and helping to solve problems,” says Brand. “Our policy of deep customer understanding and delivering customer value defines the way we do business. Our resourceful team is willing to go the extra mile to deliver proficient services. Because access to credit is restricted, we support customers in overcoming this obstacle by providing easy application and credit processes with novel, flexible repayment structures.” Great companies are built on integrity and trust, says Brand. “We are innovative thinkers, delivering dynamic and dependable repayment solutions, together with accountability and reliability.”

Tata International is proud to announce that a distribution agreement has been signed with JCB for JCB Construction Equipment in Vietnam, South East Asia. As of 1 April 2021, Tata International has been selling and supporting the full line of JCB Construction Equipment through its existing dealer network in Vietnam, with an aim to become the preferred choice of construction equipment for customers in that country. “We believe our success on the African continent, not only as a distributor or dealer for Original Equipment Manufacturers (OEMs), but as a premium supplier with a growing footprint, providing retail finance and dedicated aftermarket support and service to customers in Africa, makes us an ideal distribution partner for JCB’s quality range of products,” says Len Brand, CEO of Tata International Africa. The two brands boast a long and proud history. JCB is one of the world’s top three manufacturers of construction equipment and Tata International is a successful business with a well-established global network and world-class market expertise. “The experience we have gained in Africa is well suited to the operation in Vietnam. By applying the same expertise and strategy we are confident we will be able to maintain a sustainable business, one that provides support for the communities in which it operates. We hope to continue to contribute significantly to entrepreneurial businesses in the market,” says Brand. “This agreement will enable Tata International expand its footprint, by entering a new and growing market segment, and reinforces Tata’s commitment to a vision of building and sustaining relationships with cooperation and trust.”