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Tata Motors plans Rs 10,000 crore expansion

September 07, 2006 12:45 IST
Source:PTI

Tata Motors said on Thursday it will invest Rs 10,000 to Rs 12,000 crore (Rs 100 billion Rs 120 billion) in India over the next three to four years and was looking at Russia and China for vehicle sales and component sourcing.

"Tata Motors will be investing Rs 10,000-12,000 crore over the next 3 to 4 years for increasing manufacturing capacities and launching new products," Tata Motors Managing Director Ravi Kant told reporters on the sidelines of the SIAM summit.

Kant said the company was looking at developing Russia as an important market for selling 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, he said though refusing to specify whether this would involve equity participation.

On China, he said the company was looking at increased component sourcing to bring down costs of vehicle development in India.

"We are looking at various geographies to bring down our cost and China is one of these countries," Kant said.

On reports that Tata Motors had involved Fiat as a partner in its ambitious Rs 1 lakh car project, he refused a direct reply saying, "The two companies are always looking at synergising operations under the agreement that we have. However, I cannot comment on small car project."

Asked if Tata would partner with Iveco in the commercial vehicle business he said: "it exists in the realm of possibility but nothing is on the table as yet."

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Source: PTI
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