We will raise the prices very soon because the cost increases have crossed the limits, says Telco vice-president (marketing, passenger car division) Rajiv Dube. The company is yet to decide on the price hike quantum.

Curiously, Telcos announcement comes on the same day when Maruti Udyog Ltd (MUL) slashed its 800cc car prices. For MUL, the declining sales of its entry-level vehicle are said to be the reason for reducing the price tag by Rs 15,000. Since July 2001, the Indica, Dube says, is the largest selling car in its category. On the new vehicles front Telco will be launching the Indica Sedan in September 2002 with a price tag ranging between Rs 5 lakh and Rs 7 lakh.

End-2002 will also see the launch of the Indica Sport and variants of Sumo and Safari models, says Telco executive director (passenger car business unit and engineering research centre) Dr V Sumantran. Sumantran says the sports car will sport only a petrol engine and will come with a modified chassis and suspensions. In addition, a 1,400cc station wagon with front-wheel drive is also planned.

Telco targets to sell 1 lakh cars in 2002 as against the 89,000 sold the previous year.