Tata Motors [Get Quote] is likely to launch the world’s cheapest car as early as January 2008, turning a whole new chapter in the retailing of low cost vehicles.
According to Tata Motors’ Managing Director, Ravi Kant, work on the Rs 100,000 ($ 2,467) car was proceeding as per schedule and it will be launched in the Auto Expo to be held in January 2008 at Delhi.
The company is also developing a new line of small hatchbacks and mid-sized sedans to be launched in 2008 as well.
The four-door car would be the cheapest offering in the small car segment. Currently, the Maruti [Get Quote] 800 produced by Suzuki’s Maruti unit, is the cheapest and sells for more than $4,000. Similar cars sell for much more in rich countries.
However, competitors and critics have expressed doubt about the quality of the car.
For instance, Tata’s car will not conform to European safety and emissions norms. This is significant since the company sells cars in overseas markets such as South Africa and a few European markets. However, according to Tata Motors it would upgrade the car as and when it plans to export it.
