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Tata Motors to pump in Rs 12,000 cr in the next two years

– Paul Noronha

Bullish on future: Mr Ratan Tata, Chairman, Tata Motors at the company’s AGM in Mumbai on Monday.

Our Bureau

Mumbai, July 9

Tata Motors is set to make a capital investment of Rs 12,000 crore in the next two-three years said the company Chairman, Mr Ratan Tata, at the 62nd Annual General Meeting of the company.

These investments would meet forthcoming product launches such as the next generation Indica platform, the one-lakh car, the Tata Xover (Crossover Concept vehicle – displayed at the 2005 Geneva Motor Show), new pick-up truck (initially for the Thailand market and later introduced in India), the new Sumo and a complete new range of trucks for the commercial vehicle market.

These products will be launched in a phased manner in the next two-three years. In order to meet these investments, the company is raising additional long-term resources of $450 million by issue of appropriate securities in the international markets, said an earlier statement from the company.

The highlight of all product launches is the ‘Tata Xover’. It would be the company’s first concept vehicle showcased at a leading international auto show that is actually being approved by the board to be put forward into production. According to senior officials, the car would be modified and tuned for production purposes, and would meet market demands.

The Xover is a high-end product that has its design aesthetics quite similar to the Mercedes R-class, said an expert. It would cater to a niche set of buyers. When showcased, the vehicle was developed, designed and engineered specifically for the European market.

It would mark the company’s debutant entry into the crossover vehicle segment. It is proposed to be made available with different engine options, both in diesel and petrol, and configured to be fitted with a range of Euro IV engines, including Tata Motors’ own next generation power-trains.

Besides launching the Xover, the most-awaited one-lakh car will be unveiled before the next AGM and the company has plans to launch it by mid-2008, said Mr Tata.

While the company is gearing up for its product launches, it has set plans to export its promising one-tonne vehicle, Tata Ace, to other countries in South-East Asia and South Africa. Through the Free trade Agreement signed between European Union and South Africa, the company intends exporting to the former region, thus taking advantage of the bilateral trade agreement. On Monday, Tata Motors shares were up marginally at Rs 715.70 on the BSE.

Related Stories:
Tata's Rs 1-lakh car may come with 600cc petrol engine
Tata Motors unveils `crossover' at Geneva

More Stories on : Cars | Outlook | Tata Motors Ltd

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