Tata Motors plans 2 new plants

Tata Motor will set up one-two new greenfield plants in the country as part of its Rs 10,000 crore expansion programme to meet the target of more than doubling annual sales to one million units over the next five years.

"In five years time we expect to more than double our overall sales. Last year we sold four lakh vehicles. We are looking at close to a million vehicles in the next five years," Tata Motors Managing Director Ravi Kant said.

He said Tata Motors would set up new manufacturing units besides expanding capacity of its existing facilities.

"Already we are in the process of expansion of our plants in Pune, Jamshedpur and Lucknow. But it won't be sufficient and thus we would be going in for one-two more greenfield plants," Kant said, adding the company was setting up new plants in Uttaranchal and West Bengal.

The company is banking on the succes of its small truck Ace and the yet-to-be launched Rs one lakh car (to be out by mid 2008) for the push in sales.

Kant said Tata Motors would also increase the capacity of its overseas assembly units, including Korea and Casablanca.

About Ace, he said the company was targeting to sell about one lakh units next fiscal. "We will sell 65,000 units of Ace this year and next year, when we start selling the vehicle across the country, we hope to sell over one lakh units," Kant said, adding the company's new plant in Uttaranchal would start production by March 2007.

The plant would have a a capacity of 2.5 lakh units of Ace, Kant said, adding Tata Motors was working on the passenger vehicle version of Ace as well, though declining to divulge the timeframe for its market launch.