| Tata Group Chairman Ratan N Tata has put to rest speculation on the launch of his dream car, saying that the Rs 1-lakh car was expected to be out in early 2008.
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| In a letter to the shareholders of Tata Motors, Tata said it would be a rear-engine, 4-5 seat, 4-door car with about a 30 horse-power engine.
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| The styling and design of the car had been completed and prototypes were being tested. The car would create a new paradigm in low-cost personal transport and reach the broader base of the pyramid, he said.
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| Stating that rising fuel costs were straining the automobile industry in both commercial vehicle and passenger car segments, the Tata group chairman called for more fuel-efficient engines.
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| “Tata Motors, like other automobile companies, is exploring various new technologies to meet the new challenges arising from spiralling energy costs,” he said.
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| During the year, the company took the decision to augment its engineering research centre at Pune by establishing a European technical centre in the UK, which would have access to cutting-edge technologies and could support many product development activities which the company needed to safeguard its position, he said.
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| On Tata Motors' alliance with Fiat, he said the discussions included possible sharing of manufacturing facilities of the two companies.
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| Tata Motors had earlier agreed to support Fiat India’s sales, distribution, and servicing of vehicles through its selected outlets. This was part of a strategic alliance agreed to by them, which could include possible outsourcing of technologies and even joint development of models.
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| In a parallel move, Tata Motors has decided to place a special resolution before shareholders at its forthcoming annual general meeting, to raise up to Rs 3,000 crore through equity-related instruments.
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| The amount is required to fund the company's expansion plan. It aims to spend around Rs 10,000 crore in three-four years on product development and as capital expenditure on capacity enhancement.
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| Though the automobile industry witnessed a slowdown in the first quarter of the last fiscal, it did see an upturn towards the end of the year as the government announced a reduction in excise duty on small cars, the company said. |
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