Telco Plans To Make 3 Lakh Cars By 2000

Telco, the automobiles major, proposes to manufacture three lakh passenger cars by the year 2000. Besides, the company has set a target to make two lakh commercial vehicles by the turn of the century, said company sources.

The auto major, as part of its growth strategy, intends to be present in all the price segments in the passenger car market. The company will invest Rs 2,000 crore towards development and manufacture of various new models over a couple of years, the sources said.

Telco plans to enter the lower end of the utility vehicle segment, at present dominated by the soft-top version of Commander from Mahindra & Mahindra.

 

The company has developed a prototype and is now conducting a survey to determine the potential and nature this segment.

In the higher end of the utility vehicle market, the company already has Tata Sumo, a highly successful model from the Telco stable, and a deluxe version.

The company plans to launch Indicar, an indigenously developed passenger car aimed at the lower end, now dominated by Maruti 800, next year.

Besides, it proposes to introduce a deluxe version of the Indicar to compete in the Rs 2.75-3.8 lakh compact car segment, where Maruti Zen and Fiat Uno are the major players. Ford's Fiesta, too, will be targeting this segment which accounts for nearly 30 per cent of the total passenger car market in the country.

However, Indicar will have an advantage in this segment because of its diesel-powered engine, say industry experts.

In the Rs 4-5.5 lakh segment, the company already has a presence with the Estate and Sierra models. Both the models will be relaunched to keep in pace with the auto revolution, said company sources.

The revamped Sierra will be the first turbo-diesel sport-utility vehicle in the country. In the mid-sized Rs 5.5-14 lakh segment, Telco proposes to introduce mid-sized car, developed wholly by the company.

However, the engine for this 1,600cc model will be validated by an European company, said sources.

Cielo, Escort, Astra Accent, Audi and Lancer are the other major players vying for a significant spot in this segment which accounts roughly 5 per cent of the passenger car market.

Safari, the premium sport utility vehicle (SUV) developed entirely by Telco in association with IAD (International Automotive Design), is expected to serve a new niche of city-based SUVs, the sources said.

In the minuscule premium segment, Telco already has a presence through its joint venture with Mercedes Benz, through which it has introduced the E220 in the country.