Tata Motors strategy

Tata Motors has raised Rs 2,500 crore through advances for bookings of its low-cost car, the Nano. In the commercial vehicles segment the company unveiled its World Truck range, developed jointly with Tata Daewoo Commercial Vehicle (TDCV) of South Korea, at Mumbai on May 29. Rs 1000 crore was invested in this project and Tata Motors plans to roll out 55,000 World Trucks eacy year from its Jamshedpur plant. The World Truck can hit 100 km/hour and can travel about 700-800 km a day. The full range comprises multi-axle trucks, tractor-trailers, tippers, mixers and special application vehicles, with a carrying capacity between 10 to 75 tonnes....the trucks are also Euro III and Euro IV compliant in terms of emissions.



Tata Motors floated a Rs 4,200 crore bonds issue last month, with the guarantee of India’s largest bank SBI. The Rs 4,200 crore bond issue has been divided into four tranches maturing in two years, four years, five years and seven years. The Rs 1,250 crore seven-year tranche has been picked up by Life Insurance Corp. of India, while the rest is being refinanced through a consortium of 12 banks, including Citi, SBI, BNP Paribas and Bank of Mitsubishi, at 500 basis points over Libor. Tata Motors has also raised Rs2,200 crore through fixed deposits from the public.

The company stated in May that it had completed refinancing of the Jaguar Land Rover acquisition bridge finance, which stood at $3 billion. Tata Motors raised more cash by reducing its stake in Tata Steel, selling 11 million shares to promoter company Tata Sons for Rs 456.78 crore.