Saturday, 29 March 2014

Tata Motors to Invest in Developing New Technologies for Trucks and Buses

Tata Motors, an India’s largest automobile company, which is also world’s fifth largest truck manufacturer and fourth largest bus manufacturer. The company has over 60,000 employees who are guided by its mission “to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally.
Tata MotorsBut recent data shows, unbelievable drop in its commercial segment sales, it drop 49% to 23, 990 units in the last month proving economic slowdown effect. And resultantly the company plans to invest up to Rs. 1500 crore in developing new products and technologies for its commercial vehicle segment.

Ravi Pisharody, Executive Director Commercial Vehicle said about the plan that, “Our capex during a year generally ranges between Rs 1,200-1,500 crore. We plan to spend around the same amount during the next fiscal as well.”

"We have enough capacity for the next five years, so there won't be any additional investments. By investing into development of new products and technology, we want to be ready for the market when it bounces back," he added.

The company is expecting more launch of low-priced truck models, apart from these, the company is looking forward to develop a new range of buses to cater to Jawaharlal Nehru National Urban Renewal Mission (JNNURM), an initiative of Government of India.

The company currently eyes to launch new Prima LX, which is about 20 % cheaper than the earlier Prima trucks launched in 2009. And the company also plan to launch new variants of its light commercial vehicle (LCV) Ultra.

While commenting on the revival of the commercial vehicle segment, Mr. Pisharody said: "It is very difficult to say. It won't be back in the first two quarters, may be in the later part of the year."

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