Tata Motors, India’s largest automobile company plans to invest around Rs 800-1000 crore over the next two-three years on a plant in Dharwar, Karnataka.
“We are investing close to R1,000 crore in half-tonnes vehicles,” said Ravi Pisharody, president, commercial vehicles, Tata Motors.
“Our Dharward plant, with the capacity to produce 90,000 vehicles, which is meant for Ace Zip and Magic Iris, are getting operational.
We hope to reach full capacity realisation at Dharward by the end of financial year 2012-13.”
The Tata Ace Zip saw total sales of 3,000 last month, while the Magic Iris saw sales of around 1,000 units.
The company posted a 40.5% rise in profits in the quarter to end-December, as strong sales of its JLR models offset sluggish performance from its domestic arm, hit by high costs and interest rates in India.
JLR contributed 95 percent of the company’s profit in the quarter to end-December, helped by the popularity of its new compact Evoque SUV in emerging markets such as Russia and China.