People's car by 2007-08

The ambitious Rs 1 lakh car by Tata Motors may be launched between 2007 and 2008 even as the company said factors like inflation and cost of steel might make it difficult to maintain the price line.

"Tata Motors will go into tooling for the car, which will be launched in 2007-08," Tata Chairman Ratan Tata said today.

Asked whether the company would be able to keep to the price announced, Tata said hopefully, the car would be launched at the same price.

He, however, said the price could go up because of inflation, value of the rupee, cost of steel and other factors. Asked to comment on scepticism by other manufacturers, particularly relating to safety features of the Rs 1 lakh car, Tata retorted: "They were sceptical about Indica too."