[highlight]MUMBAI: Tata Motors Ltd, India's third-largest car maker, said on Thursday it aims to launch a cheap, small car in 2008, which will be made at a plant in the eastern state of West Bengal.
Mumbai-based Tata Motors, also India's largest bus and truck maker, will invest about Rs 10 billion ($220 million) in the plant, which will initially employ about 2,000 people and provide jobs to another 10,000 component and service providers.
The car, Chairman Ratan Tata's dream project for many years, will cost less than 100,000 rupees ($2,200).
The price less than half that of a basic car from market leader Maruti Udyog Ltd would make it accessible to millions of Indians who have to otherwise settle for cheaper motorcycles and scooters.
"We have decided to locate this rather revolutionary plant which we hope will give India its true 'people's car' in West Bengal," Tata told a news conference in Kolkata, broadcast on television.
Prototypes of the car which will have four doors and a rear engine with petrol and diesel variants are running in Tata Motors' plant in the western city of Pune, he said.
Tata said the capacity of the plant, which will spread across 700 acres with an additional 300 acres for suppliers, had not been decided.
Tata had earlier said the company would also look at small satellite units owned by local entrepreneurs to assemble cars.
Tata has said the car would use more plastic, rather than steel, and also use some modern adhesives instead of welding, to help cut costs.
That has prompted questions on safety and environmental standards from analysts and rivals, including the head of Japan's Suzuki Motor Corp, which owns the majority of Maruti.
Small cars make up more than three-quarters of India's passenger vehicles market.
Tata Motors also makes the Indica hatchback, the first car to be designed and made completely in India.[/highlight]
I wanted to tell that what ADAM MOTOR can do if we support this car n make it a success story
If we look into Indian Auto market we will feel that we lag far behind ....
We have to catch up and make up for the lost time