New car for 3k

India's Tata group set to launch world's cheapest carBy Penny MacRae in New Delhi
December 30, 2007 03:21pm
Article from: Agence France-PresseFont size: + -
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INDIA'S giant Tata Group plans to launch the world's cheapest car early in January while also looking set to drive off with two of the poshest - Ford's iconic Jaguar and Land Rover brands.

Ratan Tata, head of the tea-to-steel Tata conglomerate, will unveil the car on January 10 at a New Delhi auto show that will carry a sticker price of 100,000 rupees ($A2856), which some analysts say could revolutionise automobile costs worldwide.

And Tata, which has been on an aggressive overseas expansion drive, is also expected to win its reported $US2 billion ($A2.28 billion) bid for the British Land Rover and Jaguar brands in January - putting it in the unusual position of making two prestige cars as well as the world's lowest-cost automobile.

The cheap car, a pet project of Cornell-trained architect Ratan Tata that he helped design, is aimed at getting India's masses off their motorbikes and into cars.

"I hope to make a contribution to making life safer for them (the masses)," said reclusive tycoon Ratan Tata, who has spearheaded the growth strategy of the company known for its philanthropic values and paternal management style.

"That's what drove me - a man on a two-wheeler with a child standing in front, his wife sitting behind, add to that the wet roads - a family in potential danger," Mr Tata, who turned 70 on Friday, said on the company website.

But despite its low price and safety factors, analysts say the four-door, five-seater could be a tough sell for Tata's vehicle arm, Tata Motors, even with an economy growing by a scorching nine per cent, creating new affluence.

If motorbike owners wanted to graduate to cars, there are a lot of good second-hand cars for 100,000 rupees or less, analysts say.

"It will not be an immediately profitable venture, it will take a longer time to break even - at least three years," said Angel Broking analyst Vaishali Jajoo.

Tata has said it is targeting the car at Indian and eventually other emerging markets. A Tata Motors board member recently revealed the car would get a significant 25km per litre.

"Acceleration wise, it's the same as a Maruti 800," board member R A Mashelkar said, referring to the most popular budget model made by Japanese-owned rival Maruti Suzuki that sells for $US4800 ($A5483).

If the cheap car is a winner, environmentalists fear it will further congest India's clogged roads and add to choking pollution.

But Tata says the car will create no more pollution than a motorbike and is confident of its success.


Somehow I don't think they'll make it over here!!

hate to see how it'll go in a crash lol or on the highway on a windy day

yeh haha dont think they would go fast enough

they'll be cool tho hahah

suppose it comes down to you get what you pay for.
justifying 3k to build a car, you have to wondere where they've cut stuff from?
like you know.. safety, quality parts etc.

yeah ive heard of this car, my gf told me of it. I WOULDNT DRIVE IT AT ALL. maybe do it up but to make it look stupid. like 12 cannon mufflers ahahahahaha

i couldnt think of more of a waste of money really.

I would buy one if they came here, a cheap run a bout for under 3 k and it's brand new

yeah i would buy it and crash that instead of the pulsar

lol atleast it wouldn't be as xpensive

haha yeha i know and i wouldnt care