NEW DELHI: Tata Motors has shelved its ambitious sports car challenge, RaceMo, which was once unveiled with a lot fanfare on the Geneva global motor show last year.
The RaceMo is among the initiatives in each passenger automobiles (PV) and industrial automobiles (CV) segments which the company has decided to pull the plug after a evaluation of its capitalisation coverage on product development.
"...now we've introduced a new capitalisation gateway in our product approval process on affordability, which means even though if there's a business case that is valid, we'll take it forward only if it meets the affordability gateway," Tata Motors Group CFO P B Balaji informed analysts.
The corporate has made an impairment provision of Rs 1,641.38 crore for quarter ended March 31, 2018 associated with beneath development and capital work-in-progress after reviewing its product development programmes.
Balaji mentioned a few of it have been exceptional in nature because those initiatives weren't going to be taken ahead at all, and some of it have been "just asset write-offs that had to be taken because these are restructuring projects that we have also taken to save cash".
"All products or categories that we are not intending to continue further have all been taken in exceptional (items) for Tata Motors," he added.
When asked about details of the shelved initiatives, a Tata Motors spokesperson mentioned, "The projects are both in CV and PV and include projects like RaceMo in the case of PV, launch of new products in other export markets which we don't intend to proceed further and write-offs taken to release assets that will be redeployed to save cash flows."
Balaji has additionally said if Tata Motors could get a excellent purchaser who could invest money in the RaceMo challenge, the company would consider working together.
When it was once unveiled in Geneva last year in March, Tata Motors had deliberate to sell the RaceMo sports car beneath TAMO badge. It was once proposed to be powered by way of a rear-mounted 1.2 litre petrol engine delivering 190 PS of power.
Tata Motors had constructed it on patented MOFlex Multi-Material Sandwich (MMS) construction -- a structural generation, enabling larger freedom in floor design, efficient large-scale part integration resulting in modularity and faster time to marketplace.
Things, however, didn't pass as deliberate for the RaceMo when the company beneath the stewardship of latest Tata Group Chairman N Chandrasekaran began reviewing initiatives with a focal point on turning across the ailing home industry.
The RaceMo is among the initiatives in each passenger automobiles (PV) and industrial automobiles (CV) segments which the company has decided to pull the plug after a evaluation of its capitalisation coverage on product development.
"...now we've introduced a new capitalisation gateway in our product approval process on affordability, which means even though if there's a business case that is valid, we'll take it forward only if it meets the affordability gateway," Tata Motors Group CFO P B Balaji informed analysts.
The corporate has made an impairment provision of Rs 1,641.38 crore for quarter ended March 31, 2018 associated with beneath development and capital work-in-progress after reviewing its product development programmes.
Balaji mentioned a few of it have been exceptional in nature because those initiatives weren't going to be taken ahead at all, and some of it have been "just asset write-offs that had to be taken because these are restructuring projects that we have also taken to save cash".
"All products or categories that we are not intending to continue further have all been taken in exceptional (items) for Tata Motors," he added.
When asked about details of the shelved initiatives, a Tata Motors spokesperson mentioned, "The projects are both in CV and PV and include projects like RaceMo in the case of PV, launch of new products in other export markets which we don't intend to proceed further and write-offs taken to release assets that will be redeployed to save cash flows."
Balaji has additionally said if Tata Motors could get a excellent purchaser who could invest money in the RaceMo challenge, the company would consider working together.
When it was once unveiled in Geneva last year in March, Tata Motors had deliberate to sell the RaceMo sports car beneath TAMO badge. It was once proposed to be powered by way of a rear-mounted 1.2 litre petrol engine delivering 190 PS of power.
Tata Motors had constructed it on patented MOFlex Multi-Material Sandwich (MMS) construction -- a structural generation, enabling larger freedom in floor design, efficient large-scale part integration resulting in modularity and faster time to marketplace.
Things, however, didn't pass as deliberate for the RaceMo when the company beneath the stewardship of latest Tata Group Chairman N Chandrasekaran began reviewing initiatives with a focal point on turning across the ailing home industry.
Tata Motors shelves sports car project RaceMo
![Tata Motors shelves sports car project RaceMo]()
Reviewed by Kailash
on
May 26, 2018
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