Rs. 1 Lakh Car: Tata Motors might setup a unit in Karnataka

Tata Motors is working hard on their ambitious project to manufacture the Rs. 1 Lakh car and one of the possible locations for the plant is said to be in Karnataka. The company is said to be seriously considering a location in Karnataka — near either Mysore or Dharwad.

This location is expected to get one of the assembling units for their Rs. 1 lakh car. Tata plans to roll out this car by 2008 or 2009 in the local retail market.

Tata has considered several locations for their plants for this project. This includes locations in Maharashtra and West Bengal, besides Karnataka. The company might go in for establishing plants at four different locations — three for assembly and one for manufacturing.

The company requires an area of 700 to 1,000 acres for a plant if they have to build the car at a single location and they expect to invest as much as Rs 1,000 crores initially on the project. The aim is to provide the Indian consumer an upgrade from two-wheelers and provide a cheaper alternative to the Maruti 800, which has dominated the lower segment of the market for almost 2 decades now.

Tata’s Rs. 1 lakh car is expected to be powered by a 700 cc, Euro IV compliant petrol version. It would be a rear-wheel powered vehicle with engine at the back.

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