Tata Motors to invest Rs 4,000 crore into passenger, commercial vehicle segments

Key highlights:

• Tata Motors to invest of Rs 2,500 crore in passenger vehicle plan
• Tata Motors has planned for an investment of over Rs 1,500 crore for commercial vehicles
• Tata Motors has made a roadmap for capturing 20% market share in CV exports

Tata Motors has made an investment commitment of Rs 2,500 crore for the future of passenger vehicles programs. The company's CEO Guenter Butschek said that in addition to this Tata Motors has planned for an investment of over Rs 1,500 crore across segments in the commercial vehicles (CV) this year and annually going forward, according to a Reuters report.

This is a total of total of Rs 4,000 crore that it will invest into both the passenger and commercial vehicle segments of Tata Motors.

The report further said that Tata Motors' proposed alliance with Volkswagen did not materialise due to issues related to the technical feasibility.

The company is keen to concentrate on pushing its growth in the CV segment and has developed a comprehensive strategy for commercial vehicles. Tata Motors is looking to capture a larger share of the CV export market, said a Bloomberg report. For this, it has even made a roadmap for capturing 20% market share in CV exports, the report said.

In terms of the passenger vehicles the company product plan is ready till FY22 and is also exploring autonomous vehicles, said Butschek in the report.

Besides this, the CEO also dropped hints of entering the electric vehicle segment in a big way as he said that they know how to convert Tiago into an electric vehicle.

Contrary to media reports Butschek said that its sub-brand 'TAMO' has not been shelved, but the launch of 'Racemo' car is on hold for time being.

Tata Motors has been looking at cost reduction plans. Tata Motors eyes Rs 1,500 crore savings in local operations from cost cutting.

The company is also working to design a lean and capable supply chain and the company currently has 200 suppliers and with a new advanced modular platform model, there will be only 100 suppliers.

The company also aims to bring products faster to the market and will have a zero tolerance on product launch delays. The business turnaround will focus on rigorous cost reduction across all categories and functions.

Tata Motors is also working on network expansion to build reach and proposes dealer-wise stretched targets to manage volume commitments.

The report also said that the company will also focus on the monetisation of non-core assets and investments.

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