Tata might ship the Rs. 1 lakh rupee car with a bigger engine

Tata’s ambitious Rs. 1 lakh car was due to be launched in the market with a 550 cc engine. However, the latest rumor in the market is that the company is now reconsidering that earlier decision and is now testing a bigger and more powerful engine on this car.

This new engine would make this car almost as powerful as the Maruti 800 and Alto, which dominate the small car market in India.

Apparently, the originally planned engine was not powerful enough to carry the load of four adults in the car, which is the minimal requirement for the Tata’s project. Tata Motors has not yet commented on these latest rumors in the market.

The car was originally due to be a 4-door, 5-seater model with a 500-600 cc engine. It is scheduled for launch in 2008 and would cost around Rs 1 lakh (ex-factory price).

An inside source has been cited as saying: “The idea was to raise the fuel efficiency of the small car high enough to lure the motorcycle buyer. The new engine should not substantially change the fuel efficiency targets otherwise the economics of the car project can change dramatically.”

The project might suffer a major setback in case Maruti decides to lower the price of their entry-level car Maruti 800 massively after Tata launches this model in the Indian market.

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