Tata Motors said on Friday it will launch Rs 100,000-car in early 2008, as the company had completed its styling and designing and tested the prototypes within the plant.
Tata Group Chief Ratan Tata told shareholders that the launch of the car would create a new paradigm in low-cost personal transport, carve out a new market segment and reach a broader base of the pyramid.
"The styling and designing of the car have been completed and protoypes are being tested in the plant. It will be a rear engine, 4-5 seat, four-door car with about a 30 horsepower engine," Tata said in the company's annual report for 2005-06.
The car will 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 100,000, Tata said.
First steps have been taken to locate the manufacturing plant near Kolkata, he added.
Stating that rising fuel costs added strain on the automobile industry in both commercial vehicle and passenger car segments, the Tata Chief said it calls for more fuel-efficient engines and will spur the development of alternate fuels and energy sources for vehicles of the future.
"Tata Motors, like other automobile companies, is exploring various new technologies to meet the new challenges arising from spiralling energy costs," he said.
During the year, the company took the decision to augment its engineering research centre at Pune by establishing an European Technical Centre in the UK which would have access to cutting-edge technologies and could support many product development activities which the company will need to safeguard its position, he said.
Speaking about the need to explore opportunities of mutual benefits, Tata said the company has begun negotiations with Fiat SPA of Italy for strategic alliance under which both the companies could share technology as well as look at joint developments of models which could be badged and sold by both in different geographies.
The company is supporting Fiat India's sales distribution and servicing of Fiat vehicles through its selected outlets.
"The discussions also include the possible sharing of defined mannufacturing facilities at the manufacturing plants of both the companies," he said.
Tata said the company improved its market share in commercial vehicles which was bolstered by the successful introduction of its small truck 'Ace'.
He said the company had achieved its highest-ever sales volume of passenger cars and utility vehicles during the year.
Though the automobile industry witnessed a slowdown in the first quarter of the last fiscal, it did see an upturn towards the end of the year as the government announced reduction in exise duty of small cars, the company said.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
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