Financial Daily from THE HINDU group of publications
Tuesday, Nov 15, 2005
Financial Daily from THE HINDU group of publications Tuesday, Nov 15, 2005 |
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Corporate
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Announcements Tata Motors to roll out Novus HCV range — Collaboration with Tata Daewoo of South Korea Ambar Singh Roy
Mr Ravi Kant
Jamshedpur , Nov 14 TATA Motors Ltd will incur a capital expenditure of Rs 6,000 crore in the next five years, according to Mr Ravi Kant, Managing Director of Tata Motors Ltd. He was speaking to newspersons here today after the inauguration of the company's production facility for the manufacture of the Novus range of heavy-duty commercial vehicles. Mr Kant said the capital expenditure would be incurred on product development and on the company's manufacturing facilities in different locations. According to him, the Novus range of heavy-duty commercial vehicles would soon be launched commercially. While initially tippers, dumpers and tractor models would be launched, additions to the range would be made later. The Novus initiative was the result of collaborative effort by engineers of Tata Motors' Jamshedpur facility and Tata Daewoo Commercial Vehicles of South Korea. He said the Novus range had been "optimised and customised" for the Indian market. The Korean version of Novus was introduced in South Korea in June last year. The Jamshedpur facility has been equipped to manufacture 6,000 vehicles of the Novus range on one-shift basis. The heavy-duty commercial vehicles are targeted at the mining, infrastructure and construction industries. They would be sold through the company's dealer network. Mr Kant said the fortunes of the heavy commercial vehicles industry were cyclic in nature and it was greatly dependent upon investments in infrastructure development, road development and increase in road density. The heavy commercial vehicles industry in India has been growing in the last three years and was expected to grow by 9-10 per cent in the next one year. Mr Kant, who declined to mention sales targets of the Novus range in terms of units, said the company was hopeful of selling Novus `in thousands'. The price of the Novus offerings would be announced later. Company officials, however, said the Novus range comprised "international class vehicles at Indian prices". Export of the vehicles to markets in West Asia, Japan, China, Pakistan and Africa was also on the agenda. Earlier, while inaugurating the facility, the Chief Minister of Jharkhand, Mr Arjun Munda, said the development of road infrastructure was crucial to the growth of trade and industry. He said the State Government was considering reducing the sales tax on commercial vehicles that are purchased for deployment in large infrastructure projects.
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