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Tata Motors promises $2200 minicar by 2008

Viknesh Vijayenthiran

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Vik is an Editor at High Gear Media and contributor for a number of sites within the High Gear Media network. He was a co-founder of... More

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Tata Motors promises $2200 minicar by 2008

India’s Tata Motors is well underway in its development of a new minicar that could sell for less than $2200 in its homeland. The company stated that work on the ambitious "1-lakh car" project would start in a few months. Testing of a prototype has been completed and the project has formally been given the green light.

The only hurdle was during the acquisition of a suitable site for a new plant, but according to a company spokesperson, the car will be rolling out in 2008. An industry official has announced that the company had acquired 850 acres in region known as Singur and that it would take roughly 18 months to set up the plant for production.

The prototype is believed to have been developed at Tata’s Pune facility and that drivetrains were being co-developed with Italy’s Fiat. Initial sales targets are set at 500,000 units for the first year with numbers expected to grow to 1 million units by the end of the third year. Tata already exports its cars such as the Indica (pictured), and if demand is sufficient it may export the $2200 car to other developing nations.