The Tata Group is planning a 2008 launch for its ambitious INR100,000 (EUR1,800) car.

This was announced by Tata Motors managing director Ravi Kant while detailing the company’s quarterly results. The new date suggests the project has been delayed by about a year.

The INR100,000 project is an ambitious one for Tata Motors. The group is looking at manufacturing up to one million units of the planned car every year within 4-5 years of the car’s launch in 2008.

India’s current domestic passenger car sales are about a million units per year with annual growth of 10-15%. The Tata small car will bring a huge increase in volume and the sales target is more in line with two wheelers than passenger cars.

The Tata ‘budget car’ will see the company setting up a number of assembly units across the country with a centralised engine production facility.

Tata Group currently has a manufacturing capacity of 225,000 cars a year and expansion to one million cars will cost INR60.0 billion.

The company’s recently launched Ace mini-truck Ace has been well received and Tata Motors is planning to double its production to 60,000 units yearly in 2-3 years.

Deepesh Rathore