Tata Motors Passenger Vehicles Ltd.

Tata Motors will begin construction of a vehicle assembly plant in South Africa next week, giving the country's economy a huge boost. A sod-turning ceremony for the plant would take place on July 22, the plant at Rosslyn, an industrial area north of Pretoria, is likely to manufacture a commercial vehicle or bus for the local and African market.

Presently, Tata Motors imports its low-cost Indica hatchback, which has found some favor among local consumers in a very competitive market. The company's specialty in South Africa has been providing a wide range of trucks and commercial vehicles, rather than consumer cars.

Tata Motors’ June sales (including export) witnessed a marginal fall of 1% at 66,358. Domestic sales of the company for reporting month stood at 61,264 units, down 2% over 62,602 units in the year ago period. The company’s net profit for the year ended March 31, 2011 dropped by 19.11% to Rs 1811.82 crore as compared to Rs 2240.08 crore for the year ended March 31, 2010.