Tata Motors is giving its Indica a smaller 1,200cc petrol engine, which is set to be launched next week. Tata Motors took this step to get the benefit of a reduction in excise duty from 24 per cent to 16 per cent for small cars, as outlined in the Union Budget 2006-07.
In the Budget, the finance minister had defined a small car as one that is not longer than 4,000 mm and with engine capacity not exceeding 1,500cc for diesel and 1,200cc for petrol. The Indica is 3,675 mm long.
The price of the 1,200cc petrol variant of the Indica is likely to be between Rs 2.25 lakh (225,000) and Rs 2.40 lakh (240,000), ex-showroom Mumbai.
The Indica has dimensions similar to the Maruti Suzuki Swift and the Hyundai Getz, but it will now have a price tag comparable to that of the much smaller Maruti Suzuki Alto. The existing Indica Xeta petrol car prices vary from Rs 2.92 lakh (Rs 292,000) to Rs 3.98 lakh (Rs 398,000).
The 1,200cc engine is a variant of the Indica Xeta's 1,396cc four-cylinder unit and its power output is likely to be around 55 bhp, compared with the Xeta's 70 BHP.
Though Tata's partner Fiat has a 1,242cc engine in its stable, this is not a direct fit in the Indica engine bay. Also, it would have been cheaper for Tata Motors to re-engineer their existing 1,400cc unit than source it from Fiat.
A Tata spokesman, however, said Tata Motors did not comment on future product development.
Meanwhile, Tata is also readying the luxury version of the Indigo, the Indigo XL, with a long wheelbase. This car, which was showcased at the Auto Expo, has a wheelbase that has been lengthened by 15 cm to offer more legroom.
It will be a top-end variant of Tata's three-box car and is expected to be launched by January 2007. A 100 BHP petrol engine and later, a common-rail direct injection variant of the 1,400cc turbodiesel, will power this car. Tata Motors is reportedly setting up a special assembly line for the Indigo XL at its plant in Pune.
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