Tata Motors to Spend $1.5B to Expand Manufacturing Capacity in India
31 March 2008
Tata Motors will spend 60 billion rupees (Rs. 6,000 crore, US$1.5 billion) over four to five years to expand its manufacturing capacity in India and to set up vehicle testing facilities.
Tata Motors is India’s largest vehicle maker, with revenues of US$7.2 billion in 2006-07. With more than 4 million Tata vehicles plying in India, it is the leader in commercial vehicles and the second largest in passenger vehicles. It is also the world’s fifth largest medium and heavy truck manufacturer and the second largest heavy bus manufacturer.
Last week, Tata announced it will buy Jaguar and Land Rover from Ford for approximately US$2.3 billion in cash. (Earlier post.)
The transformation of the India-based company TATA is nothing short of miraculous. In my younger days (1980s/1990s) they were reknown for relatively cheap vehicles. Now they are purchasing great British brands such as land rover and jaguar. However the issue of energy use and conservation needs to be considered. I work in the business gas industry and it is amazing how profit is now put in the backsit (at least for PR purposes) while everyone is eager to present their environmental credentials.
Posted by: John Kaduwanema | 31 March 2008 at 07:04 AM
The transformation of the India-based company TATA is nothing short of miraculous. In my younger days (1980s/1990s) they were reknown for relatively cheap vehicles. Now they are purchasing great British brands such as land rover and jaguar. However the issue of energy use and conservation needs to be considered. I work in the business gas industry and it is amazing how profit is now put in the backsit (at least for PR purposes) while everyone is eager to present their environmental credentials.
Posted by: John Kaduwanema | 31 March 2008 at 07:06 AM
I read that they borrowed $800 million to make the Jaguar/Rover purchase from Ford. The finance guys must have liked the deal and see a future, especially considering the financial climate that exists today.
Posted by: sjc | 31 March 2008 at 09:34 PM