September 08, 2008

TATA to launch INR 100,000 car

TATA Motors is scheduled to unveil the vehicle, touted as the world's cheapest mass produced car, on January 10th 2008 at an auto expo in New Delhi. There is a big gap between the cost of the average two wheeler and entry level cars and TATA plans to fill it.

Rival car makers are, however, not convinced about the safety and emission standards of the car, coming as it is at that price level. Reacting to this, Mr Ratan Tata told FT that "we are producing a car that will be no more polluting than a motorcycle. As we are not going to produce millions and millions of them, inundating the country, we will not be adding to the carbon footprint on a per-passenger basis."

He added that "The only reason we did not make the Rs one-lakh car a hybrid, for example, is that it could not have been priced at Rs one lakh.”

As per report Mr Ratan Tata, who celebrated his 70th birthday on December 28th 2007, would like to retire from active business life after his dream project “Rs one lakh car” is launched successfully. Mr Ratan Tata told FT that "In an ideal world, after the small car has been launched and is successful, that would be a nice time for me to exit.”