Tata Motors to state exact price of Rs1 lk car near launch

Excerpts from the exclusive interview with Ravi Kant:

Q: Ratan Tata has gone on record to say that you have put in bid as far as Jaguar and Land Rover is concerned. We understand that you could possibly be looking at a tie-up with Fiat for this or a private equity firms, which way you would be looking?

A: As far as I recall, he has said he was interested. I can't say any further than that; I can't add anything more than that.

Q: But would you be looking at a possible tie-up with an existing partner like Fiat?

A: I can't add anything more to what Mr. Tata had already said.

Q: Let us talk about the LCV space because that's the space is clearly hotting up. You have a tie-up or a memorandum of understanding with Iveco. We have seen Ashok Leyland and Nissan tie-up together. When are we going to see launches coming out of that partnership?

A: We have had a tie-up with Fiat and as you know we are setting up a USD one billion plant jointly at Ranjangao for manufacturing more than 100,000 vehicles and more than 200,000 power trains. That should start production next year.

Q: You are saying that products will also be launched only next year?

A: Yes.

Q: Your thoughts on the competition now. Leyland has tied-up with Nissan and we are also possibly looking at Renault Bajaj tie-up as far as the LCV space is concerned. How do you view competition at this point?

A: I think it is interesting, as you have just heard today that there is tremendous opportunity in India, especially since the semi urban and rural areas have not really been tapped. So much greater opportunity is going to come. Outside India also, there are lots of opportunities and therefore, the scene is becoming very exciting and it is good that various players are coming into the market. I think this will only help us expand the market.

Q: Are you looking at any kind of a float maybe overseas or locally? Are you looking at any methods of raising money at this point of time, there have been reports suggesting so?

A: We have recently raised money and if there is any requirement we will look at it.

Q: Do you feel there is a requirement at this point in time?

A: At this stage, I can't say anything because we have just raised some money.

Q: Indica and Indigo re-launce, when can we possibly see those cars rolling out?

A: Very shortly. We will let you know as we come closer to the launch.

Q: The Tata Rs1 lakh car. Where has work progressed and where do things currently stand? Are we likely to see the car during the Auto Expo?

A: As Mr. Tata had already announced that we will introduce the car some time in the middle of next financial year - we are sticking to that. As far as display and all is concerned, I think we will take a call closer to the event.

Q: High input cost, high fuel cost. are the manufacturers seeing a squeeze as far as margins are concerned. Has that impacted your calculations for the Rs 1 lakh at all?

A: Surely, it has made it more challenging, no question of that, we are looking at it.

Q: Is there a possibility of revising that figure?

A: We need to wait for the launch. We will be able to announce the price closer to the launch.

Q: So you are saying it could be a possible review, we may not have  Rs 1 lakh car afterall?

A: I didn't say that. I said you should wait for the launch of the car to know how close to that figure we are, which was set out three years ago.