Vroom for more: 30 lakh cars in three years

Mumbai, Oct 30 | Updated: Oct 31 2005, 06:57am hrs
Indian carmakers are ramping up capacity by as much as 150% over the next three years. While car OEMs rolled out 12.2 lakh cars and utility vehicles in 2004-05, they will be in a position to produce around 30 lakh cars by 2008-09. A major chunk of this will be from the Tata Motors stable which is targeting an annual sales figure of 10 lakh for its Rs 1 lakh car to be launched in 2007-08, almost equal to the domestic sales of passenger vehicles last year.

Tata Motors would be followed by Indias largest car maker Maruti Udyog which is expanding capacity by 4 lakh units. Hyundai Motors too has commissioned work at its Chennai facility to expand capacity to 4 lakh units from 2.5 lakh.

Toyota has set a sales target of one lakh for its small car which will roll out in 2007-08. It is also likely to increase capacity by at least 1 lakh units. Though there are reports about the company expanding its existing facility in Karnataka, Toyota maintains it has not finalised the location.

GM is scouting for a location to set up a facility for its small car. Though GM executives have not disclosed the size of the new facility, it is likely to produce at least 1 lakh units.