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Tata Motors readies 8,000-cr capex
Published on 14 Aug. 2009 11:53 PM IST
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Tata Motors plans to spend around Rs 8,000 crore over the next three to four years on “capital expenditure and product development”, taking advantage of easing credit conditions and reviving sales to breathe life into an ageing portfolio. According to Economic Times report, the proposed plans notably cover its car division’s future products such as the new Indigo sedan due by 2009-end, the Indicruz crossover—a vehicle that derives from a car platform while borrowing features from a sports utility vehicle (SUV)—set to debut in 2010, and next-generation versions of its utility vehicles such as the Sumo and Safari. The Rs 8,000-crore plan will also cover any future models from the World Truck programme that was launched in May this year. However, these replacements are a “couple of years away”, said a company official who asked not to be named. Although a company spokesman confirmed the plan to spend on capex and product development in general terms, he did not give details. “At any point of time, Tata Motors works on several innovations on its product portfolio, in the light of long-term needs of its customers both on a domestic and global scale. We cannot share any specific information on our future plans,” the spokesman said. The spokesman also clarified that the spending plans do not include Jaguar-Land Rover, the British luxury brands that Tata acquired from Ford Motors for $2.3 billion last year. The truck and car maker has been stepping on the gas and its vehicle sales are picking up, but industry experts say the company sorely needs to refresh its product range. Most of Tata Motors’ successful models were launched years ago and have undergone some face-lifts and refreshes. Its best-selling Indica was launched in the late 1990s and Indigo in 2002. Utility vehicles Sumo and Safari are more than 10-year-old platforms. Dealers and vendors for the company say Tata Motors is working on a sub-Ace light truck and could go in for fresh capacity at Pantnagar in Uttarakhand because of the huge demand for LCVs.

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