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Thursday, June 18, 2009

Tata Motors, the Indian company that gained fame for introducing the $2,500 car, announced a new slate of trucks intended to lift its commercial vehicles business.

Analysts say Tata needed to revamp its lineup to compete with foreign companies like Volvo and Daimler, which recently started selling trucks in India, as well as local competitors including Ashok Leyland, which is also upgrading its vehicles.

The new line of trucks, named the “world truck” by Tata Motors, will come as sales of commercial vehicles have fallen drastically worldwide because of the economic crisis. Tata’s sales of medium and heavy commercial vehicles fell by nearly 29 percent in April from the same month a year ago.

The new trucks will be able to carry 10 tons to 75 tons, several times greater than the biggest trucks Tata produces today.

Tata officials say that given the billions India has been investing in new highways and roads, this is an ideal time to introduce bigger, more powerful trucks.

Many Tata customers are unlikely to upgrade to the trucks for some time because trucking companies are often short of cash and many earn profits of 3 percent or less, said V. G. Ramakrishnan, a senior director at Frost & Sullivan, a consulting firm.

Tata expects to export about half of the trucks it produces to markets like South Africa and the Middle East. It will build the vehicles in India and South Korea, where it owns the Tata Daewoo Commercial Vehicle Company.

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