The Hindu Business Line : Tata Motors Rs 1-lakh car in `ideation stage'

TATA Motors' car for the common man, priced at Rs 1 lakh, is expected to see the light of the day within the next 3-5 years, according to Mr Rajiv Dube, Vice-President of Tata Motors' passenger car business unit.

The project is in the "ideation stage" and planners are working to transform the idea into reality.

At a press conference held here recently to mark the launch of the New Indica V2, Mr Dube said a separate team comprising professionals from the company's design, materials, manufacturing and marketing departments had been set up to plan and prepare the groundwork for a passenger car that would be retailed at Rs 1 lakh "at today's prices".

Mr Dube said no manufacturer could afford to offer a conventional car for Rs 1 lakh unless the material used is different and costs are kept low.

The Tata offering would "not be a glorified three-wheeler or a stripped down version of a car."

The target customers would be those who buy top-of-the-line two-wheelers and people who look for cars in the Rs 1-2 lakh range.

According to Mr Dube, Tata Motors has attained the No. 2 slot among passenger car manufacturers with the company selling 1,33,000 vehicles in 2003. In the year-ending March 31, 2004, the company was hopeful of recording a 25 growth in sales over 2002-03. Last fiscal, it sold 104,000 passenger cars.

It also exports the Indica to western European countries. In the UK, it is sold under the City Rover badge following a tie-up with MV Rover.