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May 11, 2011, 09.48 AM IST | Source: Moneycontrol.com

Tata Motors to raise Pantnagar output to 3.5 lakh units

Tata Motors is increasing production capacity at its plant at Pantnagar in Uttarakhand by 1 lakh units per year to 3.5 lakh units to produce new small commercial vehicles Magic Iris and Ace Zip.

Tata Motors to raise Pantnagar output to 3.5 lakh units
Nachiket Kelkar
Moneycontrol.com

Tata Motors is increasing production capacity at its plant at Pantnagar in Uttarakhand by 1 lakh units per year to 3.5 lakh units to produce new small commercial vehicles Magic Iris and Ace Zip.

The India’s largest commercial vehicle maker Tuesday launched two new small commercial vehicles -- Magic Iris and Ace Zip. Both are four-wheel 600 cc vehicles targeting the three-wheeler CVs in the segment.

Company officials refused to divulge details related to investment for increasing the plant capacity and the research and development of the two products.

Around 5 lakh three-wheelers were sold in India last year, and that figure is expected to more than double to 12 lakh in the next five years and the company aims to penetrate in this segment with its four-wheelers.

Tata Motors had created a new segment of four-wheeler small commercial vehicles in 2005, to take on the three-wheeler commercial vehicles. The company has sold over 5 lakh Ace SCVs and has launched several variants like the Ace Magic, passenger vehicle in 2007.

Tata Motors is now directly targeting the auto rickshaws that currently ply in cities and towns with the Magic Iris, a four-wheel fully metal body covered passenger vehicle, which can seat 4-5 people. At the same time it is taking on the sub one tonne three-wheeler cargo vehicles with its Ace Zip, which is also a four-wheeler.

The Tata Magic Iris will cost Rs 1.95 lakh, ex-showroom Thane and the price of the Ace Zip is Rs 1.90 lakh, ex-showroom Thane. Presently a three-wheeler passenger vehicle costs around Rs 1.65 lakh.

While the two vehicles will be currently sold in petrol and diesel variants, a CNG version is also in the pipeline, said Ravi Pisharody, president, commercial vehicles business unit.

While both Magic Iris and Ace Zip will be produced in Pantnagar, the company is open to shifting some of its production to its plant at Dharwad in Karnataka in future.

NEW TRUCK, BUS RANGE

Meanwhile Tata Motors will launch a new range of LCV (light commercial vehicles) trucks and buses under the Y1 platform in July, said Sandeep Kumar, head – sales, commercial vehicles business unit.

The new LCV range will be in the 7-12 tonne category and will be produced at its Pune plant, he said.

Tata Motors is also set to launch a new intercity luxury bus to take on Volvo and Mercedes in the next 2-3 months, Kumar said. The company had earlier planned to launch it by April but is still testing the final product, he said.

“We wanted to make sure we had certain number of kilometers covered under testing. So we had planned to launch it (luxury bus) by April, but will now launch it in next 2-3 months,” Kumar said.

The size of the luxury intercity bus market in India is around 500 units a year, currently dominated by Volvo and Mercedes.

Tata Motors’ luxury bus has been styled by the company’s unit Hispano Carrocera, a body-building company in Spain, and is likely to be priced little cheaper to the current offerings by the multi-national auto makers.

Tata Motors stock price

On December 19, 2014, Tata Motors closed at Rs 486.00, up Rs 0.95, or 0.20 percent. The 52-week high of the share was Rs 550.80 and the 52-week low was Rs 331.05.


The latest book value of the company is Rs 59.58 per share. At current value, the price-to-book value of the company was 8.16.

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