The head of Suzuki Motor on Friday said Tata Motors’ plan to launch a $US2,000 car in India was not feasible in light of the planned advent of stricter safety and environmental regulations, according to Reuters.
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Reuters noted that Suzuki, through its majority ownership of national brand Maruti Udyog, dominates the burgeoning Indian car market through compact cars like the 800cc Alto and Maruti 800, which cost upwards of 200,000 Indian rupees ($4,500).
Tata Motors, India’s top bus and truck maker, is looking to launch a car in the next few years that will cost less than 100,000 rupees ($2,200), targeting a potential market between motorcycles and Maruti/Suzuki’s low-end cars, the report said.
“If you think about the direction that safety and environmental standards are going in India, you can’t sell a car for that kind of price,” Osamu Suzuki, the Japanese auto maker’s outspoken chief executive, who engineered the company’s successful foray into India 24 years ago, was reported to have said.
According to Reuters, Suzuki noted that India had plans to adopt stricter Euro 4 emissions regulations from 2010, while safety standards were also tightening for three-wheeled taxis in big cities.
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By GlobalData“Unless the (government) made exceptions for certain cars, it’s not feasible,” Suzuki said after a speech in Tokyo. “In this day and age, such exceptions are highly unlikely.”
Suzuki reportedly said his company had no plans to follow suit, but added that Tata was a formidable rival that could become “the General Motors of India” over time.
Reuters noted that, while no-frills, compact cars remain popular in India, the market is shifting up to bigger models as income levels rise and more foreign car makers enter the country.
