After accomplishing his dream of making an affordable small car for India, the Indica, Tata group chairman Ratan Tata wants to build an Asian car. He revealed his ambition at a function in Pune.

Mr Tata, who is chairman of truck and car maker Tata Engineering and Locomotive Company, exhorted participants at the 39^th annual national conference of the Automotive Component Manufacturers Association of India, saying, "We can do it, provided we change. India cannot be our boundary." It will be a challenge, he said, but the concept should be explored since a good business proposition can transcend politics.

Mr Tata has in mind the combined markets of China and India that would do away with the drawbacks of the limited Indian market.

"I have a sense of remorse because as a country we have not got together and set up a national project like other countries have done. Why can''t we still take up the challenge?" he asked auto component manufacturers.

"The challenge is that we no longer live in a highly protected world. There are tangible reasons to be apprehensive. The most important thing is quality and price," he said. Mr Tata believes an Asian car will be an opportunity as well as a challenge for component makers.

Meanwhile, Telco expects its Indica to make waves abroad. The company has despatched Indicas to several European countries and the US for evaluation. An unofficial report from Detroit on the performance of the vehicle has been positive, company sources said. Telco hopes that the Indica will be seen as an ideal small car in the US and South American markets.