Tata Motors to invest Rs 12,000 crore
The Times of India — September 8, 2006

Tata Motors on Thursday announced plans to invest Rs 10,000-12,000 crore (around $2.6 billion) over the next three to four years to expand its production capacity for passenger cars and commercial vehicles, besides developing new products. The firm further stated that it is gearing up to drive into Russia and China with plans to sell its vehicles and source low-cost components. "Tata Motors will be investing Rs 10,000-12,000 crore over the next 3-4 years for increasing manufacturing capacities and launching new products," Tata Motors managing director Ravi Kant said on the sidelines of the SIAM annual convention.

The expansion is aimed at riding the boom in demand for its commercial vehicles and passenger cars in India. Tata Motors' senior VP (passenger car business unit) Rajeev Dube added that the company expected its car sales to surpass the industry growth rates of 10-13 per cent this fiscal. Dubey said its car sales till August this fiscal had grown by around 27 per cent. "However, we expect these growth rates to come down in the coming months as the base will be higher," he added. Kant further stated that the firm planned to develop Russia as an important market for its light trucks, buses and pick-ups.

"Russia is a big market, with a large consumer base and we are working on it through three relationships for the identified segments," Kant said. The company would be assembling its vehicles in Russia. On China, he said the company was looking at increased component sourcing in a bid to bring down costs.