Tata aims top spot with 'people's car'

Asked how such a low-priced car could help it surpass Maruti Udyog in the Indian market, Ratan Tata said, "If we are able to provide a low-priced car that is successful, yes our volumes would certainly exceed those that exist today."

"The Rs 1 lakh car became a challenge and I accept it as a challenge because it's a good challenge to have. I think we are close to reaching it," Tata said.

Refusing to specify the exact timeframe for the launch, he said, "we are almost complete in terms of structure, in terms of the materials to be used. So we know, we are now just putting all of this together to just concretise what we will have."

"When we will design the car, we will display the prototype of the car and let the public see what we have."

Tata said the car maker would do as much as it can to attract as many numbers as possible. "We would like to go down as much as we can to be a car that would break new ground in terms of appealing to some of the markets of two-wheelers today."

Tata said his group had embarked on the path of being in the passenger car area as a challenge. "We have to fulfil customer expectations with new products, new technologies. But there is no ground for sitting back and being complacent."

Painting a bullish picture on the front of demand, Tata said the Indian automobile industry was on a growth path and could go even grow further at a rapid pace. He said the Indian car industry had almost grown ten times since the company launched its Indica.

"Who would have thought that there would be a 10-fold increase in demand. So it may happen again in the future," he said, adding if the current economic growth and demand curve continued, then the aspirations of many Indians who dream to have a car would be fulfilled.

Asked whether the low price of the car would mean a compromise on safety and other aspects, he said all the issues would be taken care off.

"That's what we are working towards. Emission and safety aspects of a car."

On whether the company would be sourcing the components from overseas markets, particularly China, he said it could be from anywhere. "We will do it from anywhere where it makes sense."

Investment in Pakistan

The Tata group today announced it would explore investment opportunities in Pakistan in areas like automobiles, hotels and software, saying a synergy between the neighbouring countries would be beneficial for the region.

"It is an opportunity that we have. We will be very happy to play a role in that area," Tata group chairman Ratan Tata, who is here to participate in the Geneva Motor Show, said in an interview.

Tata, who met Pakistan Prime Minister Shaukat Aziz last month as part of his exploratory mission to Islamabad for expanding business and investment in SAARC countries, said "we are waiting for the two governments to agree on a protocol which I am sure will happen in the course of time."

Stating that a synergy between India, Pakistan and Bangladesh on the economic front would be beneficial for the region, he exuded confidence that the region would be really strengthened if these three countries could work together on the trade and commerce front.

Tata said opportunities existed in various sectors, including software, automobiles, hotel and basic agricultural products like fertilisers.

Tata debunked the reports of his group having a rethink on its proposed two billion dollar investment in Bangladesh due to a volatile political situation, saying there was no question of shelving the mega plan.

"We have never looked at withdrawing. There has never been an issue of any kind of second thoughts," he said.

The investments were very much on the agenda and the company was in the process of doing a detailed study which was likely to be completed by March.

"At that time, we will go back to the Bangladesh government with a detailed proposal, complete in every respect," he added.