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Make Rs 1-lakh car, automakers urged

January 15, 2004 12:19 IST

The government on Thursday asked the auto industry to produce a car with a price tag of up to Rs 100,000 even before the debate between leading domestic automakers Maruti and Tatas on feasibility of such a vehicle is to conclude.

"If only we had a people's car costing no more than Rs 1,00,000, how many millions of people would be rushing to buy it," Deputy Prime Minister L K 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 Maruti Udyog chief Jagdish Khattar and Tata Group chairman Ratan Tata.

Following announcement by the Tatas last year that it was working on a Rs 100,000-car for the masses, Maruti had expressed scepticism over the feasibility of such a product and asserted that the company would meet any challenge to guard its position as the provider of the most economic entry level car in the country.

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