Tata Motors begins trials of Rs 1-lakh car

Tata Motors has commenced 'in-factory' trials of its upcoming small car, widely referred to as the Rs 1-lakh car.

The company has five prototypes ready and these are being tested currently at the Pune facility, Ravi Kant, MD pf Tata Motors, said here on Thursday.

"We have frozen the styling of the car and the schedule for its commercial launch is being maintained...it will be launched in two years, he said.

Calling the Rs 1 lakh price tag as figment of media's imagination, Ravi Kant said the company nevertheless considers the price point as a serious one.

"It will be impossible to offer the product at that price, as the costs of almost all inputs have increased significantly over the last couple of years before which the plan for the car was announced," Ravi Kant said.

Though the company is considering different varients of the car, the engine will be standardised, he said. Ravi Kant denied media reports that the car will run on a Fiat engine as Tata Motors has planned a joint venture (JV) with Fiat.

"The engine has been designed by Tata Motors and the styling has been done jointly by international design houses and company engineers," he added.

Tata Motors has started identifying the vendors for various components and has also started placing orders with them, he said.

Ravi Kant said the Tata-Fiat JV will be formalised in 2 months whereupon the Fiat facility at Ranjangaon near Pune will be revived. The joint venture will manufacture cars as well as power trains for the Indian market, he said.