The Hindu Business Line : Tata Motors in talks with GE for small car parts

Tata Motors is in talks with General Electric to use certain plastic components for its proposed Rs 1-lakh car. Mr Ratan Tata, Chairman, Tata Motors, said it would make the car more fuel-efficient and help the company in its endeavour to price the vehicle as per its earlier quote.

Tata Motors reiterated plans to invest Rs 10,000 crore in its operations over the next 2-3 years.

At the 61st annual general meeting, Mr Tata said that the company would invest Rs 2,000 crore for expansion plans while the remaining Rs 8,000 crore would be allotted for sustenance and new product development. New investment plans will be met through internal accruals and new borrowings.

Vehicle Loans

Expansion plans include recent plant announcements in Uttaranchal for the Ace model and West Bengal and satellite plants across the country for the Rs 1-lakh car. Introduction of the new Indica, Indigo and other Tata vehicles including the Rs 1-lakh car in 2008 will supplement its new product development investment.

Product development

Mr Tata added that a minimum of Rs 250 crore is usually allotted for product development excluding the manufacturing cost. Besides new product offerings, the company has plans to introduce some of the existing models with LPG fuel option.

Besides focus on product offerings, the company will soon start a non-banking financial company aiming to provide vehicle loans to its customers. Last year, Tata Motors had merged its financial arm Tata Finance Ltd with Tata Motors.

The company's shares on BSE closed on Tuesday at Rs 756.90, down by 3.52 per cent from the previous close.

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