Tata Motors plans its biggest investment in the passenger vehicle business

Tata Motors has decided to invest $1 billion in the next three years in its passenger vehicle business. As the demand for the newer cars is growing, Mumbai based Tata is planning its biggest investment ever. The new investment plans cover setting up new manufacturing plants in Pune (Maharashtra) and Sanand, (Gujarat) to harbor the manufacturing of the new modular car platforms like Omega and Alfa in the next five years.

The monthly sales report of the company was released for the month of June which revealed that it has over paced Mahindra & Mahindra.  This came as good news at the critical time when the UK based Jaguar Land Rover has ringed the warning bells of ‘bad’ Brexit deal.  A manufacturing line already installed in Pune that produces the Q5 range of SUVs will be rolled out this year and new plants will be set up instead.

The company doesn’t plan its business independently for the passenger or commercial business as said by Guenter Butschek, MD of Tata Motors. But the new investment plans boost the passenger vehicle business significantly as Tata plans to make such huge investment in the coming three years. The investment is a part of Tata’s strategy that targets the sustainability in a passenger vehicle. “We continue to fortify our capacity utilization, sales numbers, and cost structures. We are headed towards a long-term objective of accelerated growth”, said Butschek in an interview.