Tata Motors may hike car capacity in 2yrs

Tata Motors is considering increasing its capacity for the passenger car business unit (PCBU), and would take a final call on the issue in the next two years.

"Our current car production capacity stands at 2.25 lakh cars per annum with an average capacity utilisation of 80%. We will take a final call on capacity expansion in the next two years," Rajiv Dube, vice president (passenger car business unit) of Tata Motors, said today.

The company, which commenced distribution of Fiat cars across India as part of the new Tata-Fiat dealer network agreement, is also looking at tapping the overseas markets through the partnership.

"The current partnership deals with co-development in producing models, sharing technology and many other things. We would also be looking at markets beyond India and explore overseas opportunities," Dube said.

The Tata-Fiat dealer network consits of 25 existing Tata Motors' passenger vehicles dealers and three existing Fiat India dealers. The 28 dealers would sell the Fiat Palio and the Fiat Adventure and all Tata Motors' passenger vehicles.

The 28 dealers, who together have 44 outlets in 11 cities, would offer the Fiat Palio range at a new price of Rs 3.8 lakh (ex-showroom Delhi) and the Adventure at Rs 5.65 lakh.