Tata Motors plans to invest Rs 1,500 crore to enlarge the new products and technologies for its commercial vehicles section in the next financial year, which has confronted a delayed stoppage in sales growth.
However, the company which saw its domestic business vehicle sale drop down by 49 % to 23,990 units a month ago, thus, plans to make use of the funds to reinforce its product portfolio.
"Our capex during a year generally ranges between Rs 1,200-1,500 crore. We plan to spend around the same amount during the next fiscal as well," Tata Motors Executive Director Commercial Vehicles Ravi Pisharody said in a statement.
Meanwhile, the money would be spent on developing new product, design and technology factors, he added. Even more, Pisharody ruled out investments on competence growth during 2014-15.
"We have enough capacity for the next five years, so there won't be any additional investments. By investing into development of new products and technology, we want to be ready for the market when it bounces back," he added.
As a major aspect of its want to be future-prepared with a reach of items, it had launched low-valued truck models under the "Prima" brand recently to tap the high-volume, multi-hub fragment in the country.
Simultaneously, Prima LX reach is evaluated between Rs 18.5 lakh and Rs 32.5 lakh. At the same point, company offers Prima extent of trucks for between Rs 23 lakh and Rs 65 lakh.
Asked about the revival of the commercial vehicle segment, which is going through its worst phase, Pisharody said: "It is very difficult to say. It won't be back in the first two quarters, may be in the later part of the year."