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Tata Motors to invest Rs 1,500 crore to spruce up car business: Report

21 Nov 2012 Evaluate

Tata Motors, country’s largest automotive company is reportedly planning to invest more than half of its Rs 3,000 crore annual capital expenditure outlay on expanding its passenger car business as a large portion of its manufacturing plants are lying idle. Recently, the company had faced lower sales and tepid demand, which affected passenger car business prompting the company to invest more in product development, enter new segments and bring out product refreshes regularly. The company expects to spend more than Rs 1,500 crore for at least next four years and more than Rs 6,000 crore till 2016-17 in the car business.

The company has registered a modest 1% year-on-year rise in its car sales at 151,761 units during the April-October period, with a market share of 12.3%. However, October sales dropped 16% at 21,119 units. A silver lining in the cloud is the steady growth of Nano, posting a 31% rise in sales at 43,627 this financial year so far.

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