Last year Tata Motors had raised $100m by way of foreign currency convertible bonds. In November ’01, it had raised Rs 1,000 crore by way of a rights issue.

Tata Motors, which is witnessing robust sales of commercial vehicles and its passenger car models — compact car Indica and mid-size sedan Indogo — expects the trend to continue. "Our sales volumes have been particularly good since the beginning of the calendar year. We are confident that the trend will continue in the coming months," Mr Kadle said.

During April-February ’04, Tata Motors reported a 45.4% rise in overall sales to 2.8 lakh units, up from 1.9 lakh units in the previous year. While commercial vehicle volumes shot up 42.8% to 1.34 lakh units, cumulative sale of passenger cars surged 39% to 1.25 lakh units.

Last month, the company struck its maiden overseas acquisition deal, buying out Daewoo Commercial Vehicle Company (DWCV), the truck-making arm of failed South Korean chaebol Daewoo Motors, for $102m (Rs 465 crore).

Apart from getting a foothold in the South Korean market, where DWCV has a 26% marketshare, company officials say the acquisition will open up new markets including China, South-East Asia, Africa and the Middle East. Besides, Tata Motors is also working on plans to source heavy trucks — in the range of over 200 horse power — from DWCV to effectively take on Volvo and augment its presence in the top-end of the domestic market.

On the passenger car front, Tata Motors has already joined hands with British car maker MG Rover and is selling the Indica in UK and the European markets. While the target is to sell 1.5 lakh Rover-branded Indicas over a five-year period, the company plans to double its passenger car exports to over 5,000 units in the current fiscal.