Tata Motors is expected to borrow $450 million from foreign markets to fund its plans in the fast-growing automobile segments in India, including its proposed small car. Tata Motors has not specified the instruments it would use to raise $450 million overseas, it has said the funds would be for capital and product development expenditures, especially in the commercial vehicle and passenger car business units. Tata Motors has said it is scheduled to expand capacity of almost all its products at its unit at Uttaranchal. The passenger car capacity will be raised to 3,00,000 units by March 2008, from the current 2,25,000 units. In medium and heavy trucks, Tata Motors will increase capacity by about 1,00,000 vehicles between Jamshedpur and Lucknow. In light of commercial vehicles and in utility vehicle segments, the capacity will be raised to 90,000 units from the present 60,000 units. Recently tata motors have rolled out two commercial vehicles – passenger version of ace called Magic and winger maxi van. Tata Motors have invested about Rs. 150-200 crore for each of these product lines.
Earlier on June 19th Tata Motors has seek shareholder approval to raise borrowing limit by about 60% to Rs12000 crore, as India’s largest commercial vehicle manufacturer gears up to increase spending in new market segments, including the much-talked about small car, to boost slowing sales.