Undeterred by the scepticism shown by Maruti, the Tatas on Friday said they were working on the concept of the proposed entry-level car with price tag of Rs 100,000.

"The car is under conceptualisation," Tata Motors vice  president (commercial) Rajiv Dube said, exuding confidence on the project.

"All the best to Maruti," he said when asked about Maruti's assertion that it would meet the challenge of Tata Motors to develop Rs 100,000 car.

Maruti chairman S Nakanishi recently said in Japan that the idea to make an entry-level car with Rs 100,000 price did not seem feasible, but MUL would meet any challenge posed by the Tata group company at the entry-level car.

"The project to make an entry-level car with Rs 100,000 price is under conceptualisation. It may take 3-5 years to develop the vehicle," Dube said.

Tata Motors, whose flagship car Indica has been witnessing growing sales, said it aims a minimum of 20 per cent sales growth this year over 104,000 units last year.

"We have been posting 43 per cent sales rise so far. By the year-end, the rise should be of at least 20 per cent," he said.

The company would require to augment production capacity due to soaring demand for Indica and mid size car Indigo, Dube said, adding: "We are working at ways and means to do so (increase capacity). It may include a third shift or capital investment."

It may be mentioned here that production capacity for a range of multi-utility-vehicles and pick-ups, which stand at 60,000 units, would remain the same.

Recently, the company entered into agreement with MG Rover of the United Kingdom to export Indica.

Answering a query on the facelift of MUV Sumo, he said: "Like any other company, we will decide on the facelift as and when desired."

Passenger vehicles sales of the company grew by 41.6 per cent in November 2003 to 10,735 units.

Indica with the sales of 6,000 in November 2003 grew by 4.4 per cent over the last year figures and at the sale of 53,103 vehicles in the first eight months, has grown 10.7 per cent on year-on-year basis.

Indigo sales were 2,323 with cumulative sales for the fiscal being 17,874 while utility vehicles sales at 2,431 in November 2003 has grown 32.6 per cent with cumulative sales at 19,064.