Tata Motors to spend Rs 5 billion per year for product development

Pradeep Rane
11 November 2003

Mumbai: Tata Motors is planning to spend about Rs 5 billion per annum over the next three years for product development. The company is expected to make a slew of launches and upgrades in both passenger and commercial vehicle segments in the next three years.

In the passenger vehicles segment, it is expected to come out with the Estate and the Sports versions of the Indica over the next six months. A facelift of the Indica/Indigo potentially over FY05 is also expected.

The company is building platform for a new utility vehicle over FY06. It has also formed a team to evaluate launching a car in the A-segment at the lower end of the market. The product, if launched, will come in only after 2005, according to report by Smith Barney. In the commercial vehicles segment a 1.2-tonne light commercial vehicle and a new global truck platform over the next two-to-three years are also on the anvil.

The company's engineering research centre is responsible for these launches and they appear well equipped to deliver with about 1,100 employees (including 400 engineers). The centre also has a comprehensive software and hardware base and extensive product development and testing facilities.

Tata Motors is also looking at acquiring Daewoo's heavy-truck business, for which the company has been chosen as the preferred bidder. The due diligence process is on and the final decision is expected by March 2004, says Smith Barney.