Tata Motors to spend Rs6,000 crore in 4-5 years; M&M to invest Rs1,500 crore

31 March 2008

Mumbai: Auto Majors Tata Motors and Mahindra & Mahindra have lined up huge investments to spruce up their existing operations near Pune, in Maharashtra.

Tata Motors said it will be investing Rs6,000 crore over four - five years in its existing facilities in Pune to raise its capacity by 40 per cent to 6,00,000 units per annum. The Pune facility, spread over the Pimpri-Chinchwad area, is engaged in the design and manufacture of sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as models for development of new ranges of automobile products.

It signed a memorandum of understanding (MoU) with the Maharashtra government for the investment today.

"The facility expansion would be used for all Tata Motors vehicles," Tata Motors managing director Ravi Kant said, adding, the investment would generate 1,500 additional jobs.

While the current facility includes assembly lines for heavy commercial vehicles, medium commercial vehicles, light commercial vehicles, utility vehicles and one for passenger cars, Tata Motors plans to set up vehicle testing facilities in Pune as part of the expansion.

Reports indicate that Pune will also serve as a production centre for Tata's Rs100,000 people's car, Tata Nano.