Advani asks auto industry to produce sub Rs 1 lakh car

Dy PM LK Advani said the challenge before auto makers was to bring down the cost of the vehicle and make them more affordable.

The government on Thursday asked the auto industry to produce a car with a price tag of up to Rs 1 lakh even before the debate between leading domestic auto makers Maruti and Tatas on feasibility of such a vehicle is to conclude.

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"If only we had a people's car costing no more than Rs 1,00,000, how many millions of people would be queuing up to buy it," Deputy Prime Minister LK Advani said while inaugurating Auto Expo 2004 in New Delhi.

Pointing out that automotive products were still far too expensive for most of our rural population, Advani said "the challenge before you therefore is to bring down the cost of the vehicle and make them more affordable."

Advani's request for "cost effective products which fulfill the aspiration of a large chunk of our population" was heard by both MUL chief Jagdeesh Khattar and Tata supremo Ratan Tata.

Following announcement by Tatas last year that it was working on a Rs 1 lakh car for masses, Maruti had expressed scepticism about the feasibility of such a product and asserted that the company would meet any challange to guard its position as the provider of the most economic entry level car in the country.