Tata Motors to invest Rs 800 crore this year

Capacity to be upped 50% to 2.25 lakh vehicles.

Tata Motors plans to invest over Rs 800 crore this financial year in capacity expansion, product development and marketing.

Speaking on the sidelines of the launch of a variant of the multi-purpose vehicle 'Sumo', Tata Motors Executive Director (passenger car unit) V Sumantran said the company would raise the production capacity by 50 per cent during 2004-05, from about 1.50 lakh units now. "We will be investing Rs 800 crore during 2004-05 to augment capacity by 50 per cent, to launch more models and to intensify marketing initiatives," he pointed out.

Asked where would the Rs 800 crore come from, he said, "we are very strong in internal accruals."

The company has started work on a "new generation of vehicles which would be launched in the next 2-3 years", said Sumantran, adding, "all the future products will be on the upcoming product line."

Tata Motors is also working on the common rail direct injection engines with Delphi, the large US-based auto component producer.

The company also revealed a sharper sales thrust with the unveiling of the new-look, competitively priced Sumo variant.

With the launch of the Sumo Victa, Tata Motors has targeted a 10-15% expansion in sales of its multi-utility vehicle, Sumo, in 2004-05 (April-March), said Sumantran.

Tata Motors' shares ended on Wednesday at Rs 392.55, up Rs 7.65 or 2 per cent from its previous close.

On overdrive

• Tata Motors will launch more models and intensify marketing initiatives.
• The company has started work on a new generation of vehicles to be launched in the next 2-3 years.
• Tata Motors is also working on the common rail direct injection engines with Delphi.