India's Tata Motors to Produce $2,200 Car

Marc

Hunkered Down for the Duration with a Mask on...
Staff member
Admin
#1
I wonder.... From Yahoo News:
NEW DELHI - India's largest automobile manufacturer, Tata Motors Ltd., said Thursday it plans to set up a plant in the communist-ruled West Bengal state to manufacture a family car that will cost little more than $2,000.

The plant will be set up with an investment of 10 billion rupees ($220 million), and is expected to start production in two years, said Ratan Tata, the company's chairman.

A prototype of the five-seater model to be manufactured at the West Bengal plant is undergoing tests at a Tata facility in the western Indian city of Pune, Tata said.

He said the company aims to keep the car's price below 100,000 rupees ($2,200), making it the cheapest car on the Indian road. Currently, Maruti Udyog Ltd., in which Japan's Suzuki Motor Corp. holds a controlling stake, makes a compact hatchback that is India's cheapest car, selling for about 225,000 rupees ($5,000).

The Tata project is expected to create about 10,000 jobs at the plant and vendor chains.

Tata didn't say how many cars the proposed plant will produce each year. It also wasn't clear if the company planned to sell the car in overseas markets as well.

Tata's investment is significant for West Bengal, which the private sector has largely avoided since the communists came to power in the late 1970s.

While the Left Front — a coalition of parties led by the Communist Party of India (Marxist) — has been successful in its efforts to reduce rural poverty in West Bengal, urban unemployment has increased. Many businesses won't invest in the state, fearing labor unrest and problems in dealing with the communist administration.

But Tata, one of India's most respected businessmen, expressed confidence that the state was the right place to establish a new plant.

"We have come to believe that West Bengal is one of the most investor-friendly states," he said. "I think someone has to turn this belief into a reality."
 
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Howard Atkins

Forum Administrator
Staff member
Admin
#2
Marc said:
A prototype of the five-seater model to be manufactured at the West Bengal plant is undergoing tests at a Tata facility in the western Indian city of Pune, Tata said.
I went past this plant last Saturday.
You cannot get a new car in Israel for less than $20,000 including the nearly 100% tax:mad: :mad:
 

Jen Kirley

Quality and Auditing Expert
Staff member
Admin
#3
I wonder if it is going to be substantially unlike the Yugo, which Consumer Reports called "a bucket of bolts" and a year or so later re-evaluated the Yugo--and said, "it's still a bucket of bolts."
 

Tim Folkerts

Super Moderator
#4
Would the car even be legal to drive in the US? Given the various safety regulations in thr US, I'm not sure you could meet all the requirements for that amount of money.

Tim F
 
J

JerryStem

#5
I remember my friend's 1986 Hyundai Excel... Very bucket-of-bolts like. With it's 4speed manual & cardboard feeling construction. It lost half it's value the first year!

Now look at Hyundai. My wife loves her Tiburon (2001).

Jerry
 

Jim Wynne

Staff member
Admin
#6
JerryStem said:
I remember my friend's 1986 Hyundai Excel... Very bucket-of-bolts like. With it's 4speed manual & cardboard feeling construction. It lost half it's value the first year!

Now look at Hyundai. My wife loves her Tiburon (2001).

Jerry
Not only that, but Hyundai took Kia, a bankrupt operation, and turned them around in a matter of a few years. I keep saying it but no one wants to listen: South Korea is the next Japan.
 

SteelMaiden

Super Moderator
Super Moderator
#7
If this car was marketed in the US would they market it under the brand name TATA? This would seem to me to be one of those instances where a name wouldn't translate really well from country to country. I can hear the jokes already, Mr. Tatahead Car.

I think that the newer foreign lower price options learned alot from some of the early attempts (like the Yugo). I'm willing to say that about 1/3 of the cars I see in this area are either Hyundai or Kia. I am sure that Honda, Hyundai and Kia vehicles outnumber the B-3 in our parking lot (if you don't count the pick-ups).
 
R

ralphsulser

#8
SteelMaiden said:
If this car was marketed in the US would they market it under the brand name TATA? This would seem to me to be one of those instances where a name wouldn't translate really well from country to country. I can hear the jokes already, Mr. Tatahead Car.
And if you looked out in the parking lot and saw a bunch of those cars, you could say "Man, look at those TATAs":lol:
 

Wes Bucey

Quite Involved in Discussions
#10
Just to put things in perspective:
A prominent auto dealer in my town has over 150 new Hummers on his lot - (he has leased an additional 5 acres to store his inventory) and I hear they have trouble keeping them in stock. I'm amazed how many folks want theirs NOW! The dealer is NOT advertising "giveaway prices" either. I hear GM only plans to make 12,000 this year - isn't that what they made last year? That would make his current inventory more than 1% of last year's total sales for the world!

The dealer in the next town has nearly as many Land Rovers, but no close by vacant land to store overstock. He's slick - he has a rocky hill on his lot and has a Rover parked on the side of the hill visible to all passerby on a busy highway.

The cost to fill up the tank of either Hummer or Land Rover is more than the car payment on my first brand new Oldsmobile in late 1967.
 
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