High costs and competition may hit demand: Tata

Mumbai, Jul 9 (UNI) Inida's leading automobile manufacturer Tata Motors Ltd has said high interest rates and commodity prices along with increasing competition may dent demand for commercial vehicles in the country.

Speaking at the comany's annual general meeting (AGM) here today, Chairman Ratan Tata said, ''We may see a temporary dip in commercial vehicles sector because of high interest rates and high prices of commodities and increased competition.'' Regarding the launch of its new low-cost small car , Tata said, ''While there had been some delays, the car should be launched in the first half of 2008.'' Tata told shareholders that the company would spend Rs 12,000 crore over two to three years in capital expenditure. International business contributes 18 per cent of Tata Motors' revenues and it has been planning to expand business in southeast Asia, Latin America and South Africa. The company is partnering Italy's Fiat on passenger vehicles, engines and trucks.

Tata Motors said it has also lined up new launches, including a new Indica hatchback, a next-generation Indigo sedan, a crossover vehicle and a new-generation truck.

TAL Manufacturing Solutions Ltd, a subsidiary of Tata Motors, is looking to make large supplies of defence and aerospace equipment, Tata added.

UNI