Indian giant Tata will start building an auto assembly plant in South Africa in July for production which is likely to target the local and African market, Business Day reported on Thursday. "We’re not giving out any details now, but it's been in the planning for some time to build an assembly plant in SA," said Mumbai-based spokesman Debasis Ray. "We're very excited that it's got to the point that it's come to fruition. We're on the doorstep of a major milestone." A government source told the newspaper that the ground-breaking ceremony was set for July 22 for the facility in Pretoria that was likly to produce a commercial vehicle or bus for the local and African market. India's top vehicle maker Tata Motors produces the world's cheapest car, the Nano, and is known for lower-cost commercial vehicles. In May Tata reported a nearly fourfold increase in annual profit, boosted by booming sales and strong demand for British brands Jaguar and Land Rover which it bought three years ago.