From being a defence mobility solutions company, Tata Motors is aggressively expanding into tactical and combat vehicle segments. |
While it plans to sell its tactical range of vehicles in the overseas markets, it also aims to start manufacturing heavy armoured vehicles. |
"We plan to sell the tactical range in the SAARC, ASEAN, West Asia and African countries also," V S Noronha, head-defence, said on the sidelines of the Defence Expo 2008. |
Noronha said the company's latest offering in the range, the light specialist vehicle, was made according to the specifications of the Indian Army. |
"The Indian Army will float a tender to buy 200 of light specialist vehicles. At present they are conducting trial runs," he said. The light specialist vehicle would compete with the likes of Land Rover and Humvee defence vehicles in the international market. |
"Since ours is an indigenously developed product, we will be highly competitive in terms of price," Noronha said. |
A Humvee defence vehicles costs around $85,000 in the international market. |
Armoured Noronha said the company may also start manufacturing heavy armoured vehicles such as tanks in the future. |
"As of now it is not in the scheme of things. But, we might look at that aspect also," he said. |
Noronha said the company at present is only into upgrading the engine and transmissions of the Indian Army's light BMP tanks and infantry combat vehicles. |
"The shells have a long life. We just upgrade their engines and transmissions," he said. |
Bus, trucks Ravi Pisharody, vice-president""sales and marketing""commercial vehicles, said the company would set up its joint venture bus assembly plant with Marcopolo at Dharwad in Karnataka. |
Tata Motors has a joint venture with the Brazilian bus builder to assemble buses and coaches in India. |
The venture would see an initial investment of $13.3 million. |
The plant will have a capacity of 30,000 units per annum and would start production in the second half of the financial year starting April, Pisharody said. |
He said though the plant is being set up from an assembling point of view, the joint venture may also look to make chassis and engines in the plant since Tata Motors has the capability. |
"As of now, we will source the chassis from our Lucknow and Jamshedpur plants," he said. |
He said the company would bid for the 1,000-buses tender to be floated by the Delhi Transport Corp. |
"We are looking to sell the Marcopolo low floor buses to the Delhi government," he said. |
Asked about the medium and heavy commercial sales in the country, Pisharody said he was hopeful that February and March would turn out to be very good months for the company. |
"Sales are going to pick up during the last two months (of 2007-08 financial year)," he said. Medium and heavy commercial vehicles sales in the country have been hit hard by high loan rates and stricter lending norms of banks. |
Shares of Tata Motors Friday closed at Rs 751.85, up 2.55 per cent from the previous close on the National Stock Exchange. |