Tata Motors is looking at an investment of €145 million in the current fiscal year towards product development and capacity expansion.

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The expenditure will be incurred through internal accruals. Under this plan, the automaker plans to increase its passenger car capacity by 50% from the current 150,000 units. The automaker is working on a new MUV/SUV platform, the replacement for the Indica and the proposed INR100,000 (€1,850) car.


Tata needs the additional capacity to meet the increase in demand of its Indica hatchback and Indigo saloon, partly also to meet the export commitments to MG Rover.


The company has also launched a facelifted version of its popular MUV Sumo. The new Sumo carries most of the body shell and components from the earlier version. The minimal changes are limited to the area of the front and rear lamps and the grille, while there have been changes to the steering system. The Sumo Victa line also comes with new interiors.


Deepesh Rathore / Tilak Swarup

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