Date:05/09/2008 URL: http://www.thehindu.com/2008/09/05/stories/2008090560601900.htm

Business

Small car is here to stay, says Ratan Tata

Sandeep Joshi

Rising material cost puts pressure on pricing

‘Demand for
low-cost cars
is growing in India’
No timeline given for the availability of the car

NEW DELHI: Asserting that everything possible would be done to ensure the launch of world’s cheapest car Nano according to schedule, Tata Group Chairman Ratan Tata on Thursday said it was for “others” to answer whether the controversial Singur plant in West Bengal would be operational on time to ensure mass production of the Rs. 1-lakh car.

“We plan to launch Nano as per our schedule. We will try and do everything possible to ensure that Nano is launched on time,” Mr. Tata said at the annual convention of the Society of Indian Automobile Manufacturers here on Thursday.

Mr. Tata, however, did not clarify whether Nano, unveiled at the Auto Expo earlier this year, would be available during the forthcoming festive season. When asked whether the Nano would be rolled out from Singur as planned, Mr. Tata said: “This needs to be asked to others and not to me.”

Asked if the Rs. 1-lakh car would come at the original price, Mr. Tata refused to comment. He, however, said there was a pressure due to rising input costs which the industry as a whole was witnessing. “Pressure is there due to increased material cost. Therefore, I am even more reinforced that there would be growing requirement for low-cost small car in India and other markets,” he added. “The need and demand for low-cost cars in India is growing and such a car would be more dominant because it reaches out to the people who are looking out for their first car. Even globally, the demand for small cars would go up due to the rising fuel costs. The small car is here to stay,” he said.

Mr. Tata refused to answer any other question on the Nano issue or gave any timeline when the much-awaited car would be available in the market. Other top Tata Motors functionaries, including its Managing Director Ravi Kant, who is also SIAM President, remained tight-lipped on the issue.

Mr. Tata, who has been getting support from leading chambers and top industrial and corporate houses on the Singur plant issue, garnered huge support on the ongoing controversy at the convention. His Nano project and the stand taken by him on the issue were widely welcomed at the convention.