Tata Motors Ltd. wants to expand its commercial vehicles business in response to the recovery of its luxury Jaguar and Land Rover brands and an increase in demand in India (its domestic market), according to CEO Carl-Peter Forster. He told reporters last Thursday that Tata sees strong potential for the global truck business and is exploring synergies with partner Fiat S.p.A.
Currently, Tata Motors has a joint venture to sell Fiat-brand cars such as the Linea, Grande Punto and Palio in India. Tata Motors is searching for a plant in India to produce small trucks.
Forster also said that Tata Motors is a dominant player in the commercial vehicle segment in India. Forster believes that Tata has all the ingredients for it to become a big player in the global market.
Forster, who had transferred from General Motors Europe to Tata earlier this year, said that the new products from its JLR luxury brands were well received.
Tata has plans for a modern-day Land Rover Defender. Because of the demand for JLR vehicles, Tata Motors surpassed forecasts with a fourth consecutive quarterly profit earlier this week.
Shares of Tata Motors, India's leading vehicle maker with about two-thirds of the Indian market, were up to their highest level in at least the past two decades.
In India, there is a very high demand for cars, trucks and buses, with new-car sales in India reaching a record high in July, and a 38% climb from a year earlier -- a result of the launch of new models and the improved economy.