Tata Motors plans to invest $1 billion in passenger vehicles over next 3 years

Tata Motors plans to invest $1 billion in passenger vehicles over next 3 years

New Delhi, Jul 10: Tata Motors is planning to invest $1 billion in the passenger vehicle segment over the next three years owing to rising demand, reports said.
The company plans to open new manufacturing lines in Pune for the Q5 range of SUVs that will be rolled out by year-end. It is also planning to build new modular platforms — Omega and Alfa in Sanand, Gujarat over the next five years. These platforms would churn out over a dozen new models.
The investment is a part of Tata’s turnaround 2.0 strategy to make its passenger vehicles financially self sustainable.
Earlier, the company’s MD and CEO Guenter Butschek, addressing employees at the annual townhall, said that under Turnaround 2.0, Tata Motors’ effort would be to enable its PV business to “fund for itself for future and also help in taking us much beyond the aspirations of being the No 3 in domestic market”.
Under Turnaround 2.0, Butschek said, Tata Motors would continue working towards “higher objectives, cost reduction initiatives, timely product launches and yielding better results”.
The move comes after the company saw 15-20 percent growth in car sales for two consecutive years. This growth was recorded on the back of bridge products — Tiago, Tigor and Nexon. For the month of June, the company reported 54 percent jump in sales volumes at 56,773 units compared to 36,836 units in the same months last year.
The company officials are confident about the strategy as the company is rolling out several new-generation models in the coming year.
“There is a strong tailwind for brand Tata in the car business and positive sentiment within the organisation with growing volumes,” a person aware of the development said.
The source added that unlike the past, the company has managed to break into the consideration set of people. Tata Motors’ market share improved over one percentage point to 6.39 percent at the end of FY18.