Tata Motors plans new Ace plant
The Economic Times — March 2, 2006

GENEVA: Prompted by the huge success of its newly launched mini truck, Ace, India's automobile giant Tata Motors has decided to set up a new plant to meet the growing demand in both domestic and overseas market.

"The Ace mini truck has received huge response and the demand has completely outstripped the supply," Tata Motors Managing Director Ravi Kant said on the sidelines of Geneva Motor Show here.

He said there have been enquiries from abroad about the vehicle that has prompted the company to decide about setting up of a completely new plant for manufacturing Ace, which has been developed on a completely new platform.

Kant, however, said the location of the new plant has not been decided as yet but the company is looking at various options.

The indigenously developed Ace has been launched in May 2005 with an installed capacity of 30,000 vehicle production capacity at its Pune plant but within months the installed capacity was falling short to meet the demand for the truck.

In view of the growing demand the company is in the process of doubling its capacity at Pune, he said adding that it may not be enough to meet the future demand.

"The doubling of the capacity would be completed in next three months," he said.

Kant said the company is also looking at various options to fund the new manufacturing unit and one of it was to internally generate it.

Tata Motors was also preparing for the growing competition in the large bus segment where the market for Volvo is growing in a big way.

"We have ambitious plans in the large vehicle segment and we want to be a major player in this segment" he said.

He further said with the improvement in the road infrastructure in the country the transport sector is going to grow very fast and Tata Motors would like to be present in all vehicle segments, right from huge trucks and buses to mini trucks.

Responding to a query Kant said after falling out with Rover of the UK, the company is looking for various options to enter the British market and within the next few months they plan to work out a scheme in this regard.

Tata Motors had earlier entered a tie-up with Rover to market Indica car as City Rover in the UK but the arrangement could not last due to financial problem faced by the Rover.