Tata Motors has announced an investment of Rs 2,500 crore towards the development of new platforms and products.
Currently, Tata Motors has six platforms, although this number will eventually trickle down to two. The idea is to roll out multiple models from different segments under single platforms, thereby reducing development and production costs. Tata aims to deliver at least seven variants from two platforms, which should prove beneficial in terms of economies of scale.
With the Tiago, Tigor and Hexa performing well in the Indian market, Tata registered a 11 per cent growth in the last financial year. The decision to invest Rs 2,500 crore comes from Tata Motors’ ambition of becoming the third largest car manufacturer in the country. The Pune-based firm currently holds the fifth spot, although the new wave of transformation should help it achieve the target. The company is also betting on the new Tamo brand to further drive its business. As of now, Tata is gearing up for the launch of the Nexon ahead of the festive season.