JAMSHEDPUR: Tata Motors Monday said it would invest over Rs.60 billion ($1.3 billion) in its different plant locations by 2010 for development of its products and assets.
"The capital expenditure will be made to develop both the cars and commercial vehicles segment," Tata Motors managing director Ravi Kant told reporters.
Tata Motors, he said, wants to be a dominant player in the heavy commercial vehicle segment and the vehicles would be targeted for the construction and mining sectors.
Kant was speaking after the inauguration of the new factory (6,000 unit per year capacity) for manufacturing the next generation heavy commercial vehicle, named Tata Novus, which would be rolled out shortly.
"Once rolled out, we want to sale in thousands. The sales will depend on the development of the road sector in the country," he said
Tata Motors has already localised most of the components and more localisation is in progress, Kant said.
He said the commercial vehicles market would grow by 8-9 per cent and is dependent on the growth of the road sector in the country.
Tata Novus, comprising the tipper, dumpers and tractor models, is a collaborative effort by the engineers of Tata Motors and its wholly owned subsidiary Tata Daewoo Commercial vehicles (South Korea).
Tata Daewoo Commercial Vehicles research and development executive K.K. Kim said the Novus manufactured in the Korean plant is already being exported to Europe, New Zealand, Middle East and South Africa and the company is looking at export opportunities in Japan, China and Pakistan.
To a query on the performance of Tata Ace, he said the product has been launched in five states and 3,000 vehicles were being sold every month resulting in an annual sale of 36,000 units.
Earlier, Jharkhand Chief Minister Arjun Munda inaugurated the plant.
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