Automobile firms plan over Rs.60,000 cr. capex by FY20

Date posted: Monday 16 July 2018

Automakers have lined up capital investments of close to Rs.60,000 cr. in the next couple of years as they redesign vehicles to comply with new regulations and up R&D spends to come up with new models. The industry spent an average of Rs.22,000 cr. in 2016-17 and 2017-18 as it added capacity, upgraded technology and products. The biggest chunk of investments, in the next couple of years, will be made products, including electric vehicles, apart from preparing for a host of regulatory changes like BS-VI emission norms and improved safety features. Almost all automakers have plans to launch an EV around 2020. This is true across the three categories — passenger vehicles (PVs), two-wheelers and commercial vehicles (CVs).

(Financial Express)

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