Tata, M&M to invest Rs 7,500cr in Maharashtra

Tatas to expand Pune capacity, M&M ups investment in Chakan.

Days after the Fiat-Tata joint venture announced an investment of more than Rs 2,300 crore in the Ranjangaon plant in Maharashtra, Tata Motors and Mahindra & Mahindra have separately committed to invest Rs 7,500 crore to increase capacity at their units in Pune and Chakan, the auto making centres in Maharashtra.

Tata Motors today said that it will invest Rs 6,000 crore over the next 4-5 years to increase capacity at its Pune plant in addition to setting up vehicle testing facilities in Pune district.

This mega investment will be a part of the overall expansion programme of the company which has planned about Rs 10,000-12,000 crore investments by 2010-11.

This will not only make the plant a world class facility, but also hike the company’s capacity at the plant by 40 per cent to about 600,000 units a year. It will roll out all of the company’s products — perhaps even the Nano — from the Pune plant.

Ravi Kant, managing director, Tata Motors, said, “We expect the demand of the Nano to be substantial and we will have to look at manufacturing the car (Nano) also in other parts of the country (apart from Singur). This facility will manufacture all products of the company.”