The Hindu Business Line : Tatas' small car may be launched in 2008

"The styling and design of the car have been completed and prototypes are being tested within the plant. It will be a rear engine, 4-5 seat, 4-door car with about a 30 horsepower engine."

Mumbai , June 23

The latest annual report of Tata Motors has revealed some of the broad contours of the Tata-Fiat alliance as well as specifications of the company's proposed small car.

In the Chairman's statement, Mr Ratan Tata said, "During the year, the company entered into discussions with Fiat S.p.A of Italy on a strategic alliance to explore opportunities of mutual benefit, which could include possible sourcing of technologies, power trains and major aggregates from Fiat, sharing of common vehicle platforms between the two companies and even possible joint development of models, which could be badged and sold by both companies in different geographies.

"As a first step in this important alliance, Tata Motors is supporting Fiat India's sales distribution and servicing of Fiat vehicles through selected Tata Motors dealers' outlets. The discussions also include possible sharing of defined manufacturing facilities at the manufacturing plants of both companies.'' On the upcoming small car, Mr Tata noted, "the styling and design of the car have been completed and prototypes are being tested within the plant. It will be a rear engine, 4-5 seat, 4-door car with about a 30 horsepower engine.

The car is expected to be launched in early 2008 and we believe it will be extremely attractive to the Indian consumer — particularly younger families — at a price level of about Rs 1 lakh. "The launch of this small car will create a new paradigm in low-cost personal transport. It will create a new market segment and reach the broader base of the pyramid.''

At its AGM scheduled for July 11, the company would be seeking shareholders' approval to raise the borrowing limit to Rs 7,500 crore and its authorised share capital from Rs 410 crore to Rs 450 crore.

Tata Motors also proposes to raise additional long-term resources not exceeding Rs 3,000 crore, here or abroad, through issue of appropriate securities, the 2005-06 annual report said.

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