Tata Motors to pump Rs 12,000cr in new models

Tata Motors will invest Rs 12,000 crore in the next three years to roll out a slew of models in cars and commercial vehicles segments, Ratan Tata, chairman, Tata Group, said today.

Addressing the company's shareholders, Tata said: "Capital expenditure will be Rs 12,000 crore in the next three years in Tata Motors. We will come out with slew of products."

Tata also said the company was not afraid of competition from European car makers, but feared the Chinese, which could come out with cheaper cars.

"We are not afraid of European car makers, they don't make cheap cars. But greater threat to us is when Chinese companies come to Indian market."

New models that are in the offing include the new generation Indica and Indigo, cross-over models that it launched at the Geneva Auto show, new pick-up trucks to be developed in Thailand, an improved Sumo and a new range of trucks.

The company declared 15% dividend.

"We are giving a modest dividend as we want to conserve the reserve for capital expenditure. We just do not want Tata Motors to remain an Indian company, we want to put it on the global scale," he said.