Tata Motors on Friday said it would launch the much-touted Rs one lakh car in early 2008, as the company had completed its styling and designing and tested the prototypes within the plant.
Tata Group Chief Ratan Tata told shareholders that the launch of the car would create a new paradigm in low-cost personal transport, carve out a new market segment and reach a broader base of the pyramid.
"The styling and designing of the car have been completed and prototypes are being tested in the plant. It will be a rear engine, 4-5 seat, four-door car with about a 30 horsepower engine," Tata said in the company's annual report for 2005-06.
The car will be launched in early 2008 and we believe it will be extremely attractive to the Indian consumer, particularly younger families, at a price level of about Rs one lakh, Tata said.
First steps have been taken to locate the manufacturing plant near Kolkata, he added.
Stating that rising fuel costs added strain on the automobile industry in both commercial vehicle and passenger car segments, the Tata Chief said it calls for more fuel- efficient engines and will spur the development of alternate fuels and energy sources for vehicles of the future.
"Tata Motors, like other automobile companies, is exploring various new technologies to meet the new challenges arising from spiraling energy costs," he said.