An executive at Tata Motors has said the company is planning to invest INR3.5bn ($US76m) in its commercial vehicle plant in Lucknow, Northern India, according to Reuters.
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Tata will use the investment to treble capacity at its plant in Uttar Pradesh state from 30,000 trucks a year to 100,000 units by the 2008 financial year (ends March 2008).
The Lucknow plant was established in 1991 to build medium commercial vehicles mainly for the northern Indian market. In 1995 the unit also started manufacturing light commercial vehicles and Tata Sumo SUVs.
The news follows last week’s official announcement that Tata would set up a new car plant to build small cars in West Bengal, at a cost of INR10bn. The move is a first step in the company’s plant to build a $2,000 (sub-INR100,000) car. The plant will employ 2,000 people and come on-stream by 2008.
Tata also has plants in Pune, in western India, and a truck plant in Jamshedpur.
