Tata to Raise $1.2 Billion for Product Development

Tata Motors Ltd. plans to raise 75 billion rupees ($1.2 billion) in a rights offer to help fund new products for its Indian operations and Jaguar Land Rover luxury car unit.

Tata said previously it intends to invest about 40 billion rupees ($640 million) per year on its domestic operations over the next three years. During the same period it also will spend several times that amount on new products and additional production capacity at JLR.

Tata plans to introduce two new passenger vehicles in India every year through 2020 as it strives to update its aging domestic product lineup. The company unveiled the Zest small sedan, its first new model in four years, last August. It debuted the all-new Bolt mini-hatch in January.