Undeterred by the scepticism from auto majors, Tata Motors on Thursday said work was underway to develop an entry level car with a price tag of Rs 1 lakh.
"Rs 1 lakh car is under development", Tata Sons chairman Ratan Tata said on Thursday.
The statement came after Deputy Prime Minister LK Advani urged Indian industry to come up with low budget car costing around a lakh while inaugurating the Auto Expo in New Delhi, a statement which was heard by Tata and Maruti MD Jagdish Khattar earlier in the day.
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 vehicles and make them more affordable."
Earlier, Suzuki chairman S Nakanishi had remarked "all the best to Maruti," when asked about Maruti's assertion that it would meet the challenge of Tata Motors to develop Rs 1 lakh car.
Nakanishi doubted the idea to make an entry-level car with Rs 1 lakh price did not seem feasible, but MUL would meet any challenge posed by Tata Motors at the entry-level car.
The project under development may take up to three to five years for development, company officials said.
{{/usCountry}}The project under development may take up to three to five years for development, company officials said.
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