Tata Motors steps on gas

Mumbai, Jan. 29: Tata Motors today unveiled its plans for the domestic and overseas markets.

The company expects a capital outlay of Rs 4,000 crore for the Indian business and $5.3-5.6 billion for Jaguar Land Rover over the next 2-3 years.

In a postal ballot notice issued to its shareholders seeking their permission for the Rs 7,500-crore rights issue, Tata Motors said it would also expand its presence in Thailand, Indonesia, South Africa and South Korea.

The company today revealed its plans for the commercial vehicle (CV) segment. "These developments are expected to include the addition of more than 100 products (taking into account differing tonnages, power train combinations and variants) in the commercial vehicle business over the next three years," Tata Motors told shareholders.

Earlier, the company had said that it would launch 2-3 model of cars every year till 2020.

The company has laid out specific plans for the domestic commercial and passenger vehicle segments. It hopes to launch over 100 models or variants in the commercial vehicle segment over the next three years. This includes theintroduction of the Ultra range of trucks and expansion of the Prima portfolio.

Besides launching 2-3 models of passenger cars every year, the company said it would bring in eight improved and enhanced vehicles across five key brands over the next three years. It added that the products would beoffered on a "new modular platform" from 2016-17.

Tata Motors indicated that JLR, which now has a capital-spending target of 10-12 per cent of its revenue, could invest more to realise growth opportunities. The subsidiary is likely to add more than 40 products in the future apart from increasing its manufacturing capacity in the UK. JLR will also expand its operations in China and Brazil.

The company pointed out that while it had been meeting a large part of the capital outlay through its consolidated cash flow from operations, it was coming out with a rights issue "taking into account the cyclical nature of the automobile operations and the future capex and product development programme envisioned for the group''.

Tata Motors