Tata low-cost car may see exports

The Tatas are learnt to have decided on exporting their low cost car to other countries in Asia as well as African nations. According to a report, the Rs 1 lakh car being built by Tata Motors would fulfill the needs of the low income populations in these countries. The new small car is expected to be launched in the first half of next year.

The report quoted the Tatas chief Ratan Tata as saying that the small car , which will be a never-before-undertaken project, would hopefully create a new paradigm in the aspirational fulfillment of the lower-income segments in India, Asia and Africa.

The project, being set up at Singur in West Bengal, has been mired in political controversy. However, Tata is optimistic that the company's operations would benefit Singur in a similar manner to Pune, Jamshedpur, Lucknow and Dharwad. The Tata chairman, according to thereport, expressed confidence that the company's bonafides and sense of social responsibility will overcome the misplaced apprehensions and concerns, which arose in the early days of the project.

It is common knowledge that Tatas have seen their margins being hit by the rising prices of raw materials such as steel, non-ferrous metals, rubber and engineering plastics. With this reality in mind, the company would focus on innovation and market leadership in the next 2 years, as a slew of new cars are scheduled to be launched during the period, said the report.

As a reaction to the Singur plan, many an automotive component supplier and manufacturer are waiting in the wings to set up shop not far away from the Tata facility.