The Hindu Business Line : `Indica successor in final stages of design'

"Though there will be a family resemblance to the Indica, the car will look different and will be bigger. The wheel base will be bigger, the seating will be more spacious and the three-box version of the car will have more changes in it than the Indigo has compared to the Indica," Mr Tata said.

He added that though Tata Motors has the capability to design the car by itself, it is involving IDEA with the design so that the car will not be totally different and will have a visual resemblance to the Indica.Mr Tata also said that Tata Motors was building up a `war-chest' that would help it respond in real time to business acquisition proposals. This fund would be created out of the $500 million that the company proposes to raise now.

"If Tata Motors were to avail itself of the various options when they happen, it needs a war-chest that it can draw on rather than structure a financing deal should an opportunity arise."

On whether such acquisitions could be in the passenger vehicle space, Mr Tata said: "Maybe. We don't have an option before us but in the event that we are either offered a facility, find a facility or a going company that has a product or even sub-assemblies of interest, we would look very carefully at that."

He also said that the acquisition of Daewoo Commercial Vehicle Company (DWCV) was a strategically important one and would complement Tata Motors "terrifically".

"DWCV provides a readymade opportunity to address markets in the Far East and West Asia with products that we didn't have before."

Tata Motors would offer its products in the light and medium commercial vehicle space to DWCV that did not form part of its product range.

"So, in an overall manner, we have a win-win situation. We have a product line that we didn't have; an association with a work and productivity culture that we have often looked at from India and which we will now gain from. Now we also have a foothold in the Asian region in terms of a manufacturing source."

Stating that the Reserve Bank of India and other approvals for the acquisition came through "extremely fast", Mr Tata said that this was very different from the situation even 5-6 years ago.On whether the thaw in relations with Pakistan opened up an opportunity for Tata Motors, he said that the company had a "tremendous opportunity" in Pakistan both in commercial vehicles and passenger cars.

"Pakistan provides a tremendous opportunity not just for Tata Motors but also for several Tata companies. While we have not seemingly done anything, all of us have been looking very seriously at the market. When it opens up we will be very active in being there."