Tata Motors will start selling its Rs1 lakh small
car by mid-2008, its managing director Ravi Kant said
on the sidelines of the Society of Indian Automobiles
Manufacturers'' annual conference.
said construction of the plant for making the car was
small car project is running behind schedule due to political
turmoil over land acquisition at Singur in West Bengal.
The company, however, has been saying it would put in
all efforts to make up for the lost time.
however, said high input cost was making it "challenging"
for the company to maintain price of its people''s car
at Rs1-lakh level.
input cost has made it more challenging to maintain price
at the Rs1 lakh level, but whether we will launch the
car at a higher price or not, will be evident only when
we introduce the product," he said.
said the company''s sales have been hit primarily by two
reasons - high interest rate in the domestic market and
appreciation of the rupee.
a double whammy for us. On one hand, high interest rates
are pulling down domestic demand on the other rupee appreciation
has hit exports. In business, you need certainty, and
thus interest rates needs to be stabilised," Kant
company, he said, will soon introduce upgraded variants
of its Indica and Indigo models.