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Old 15th June 2006, 20:05   #15 (permalink)
Steeroid
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Quote:
Originally Posted by Poseidon
Tata Ace already costs Rs 2 lakh. Though this car must be from Tatas (being reigning kings of diesel cars), on 2nd thoughts it need not necessarily be the 1 lac offering - they can price it higher also....
Not necessarily. A vehicle designed to carry a 0.50 tonne payload will require different engineering than one that is designed to carry 4 people, because a 0.5 tonne vehicle in India usually ends up getting overloaded to twice its payload and will be therefore overengineered for load.

From the concept that Mr. Tata has been talking about the new 'car' will be very light, employing plastics and composites wherever possible and engineering adhesives instead of welding. I'm assuming the cost of steel required itself will reduce drastically, especially when one considers the ladder frame of the Ace.

Then there will be excise duty cuts when the vehicle is assembled in SSI units around the country. Volumes generated by a car sold at that cost will also drive down the cost of various components required.

The engine itself may be shared with the Ace, which is already doing about 100,000 units plus a year. Other components may be shared with the Indica family. Obviously the cost would come down with such volumes.

I think it may be possible. And if it does give 30+ kmpl of diesel, it will have long waiting lists as well - it will be hard to resist in times like these. Hell, I'd buy one to run around the city in.
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Last edited by Steeroid : 15th June 2006 at 20:08.
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