Friday, September 1, 2006

Tata vs Maruti - The new battle?

 Its been more than a couple of years now that we have been hearing news regarding
the up-coming 1 lakh rupee car from TATA. Sure, it wont be anywhere close to
1,00,000 but still, at around 1.3 lakh rupees OTR, it would appeal to almost every
household as a first or a second car.
But TATA's party can be spoilt by Maruti for sure. We all know Maruti makes a lot of money
on the M800, what with the company having recovered every rupee invested in developing
the car. They can easily slash the price of the entry level M800 by almost 30-40000 bucks, making the base version retail for around 1.5 lakhs. Makes sense? With the no of Maruti
service stations, the tried and trusted engine, and the loyalty customers show towards
Maruti products, it wont be a surprise to see TATA engineers scratching their heads.

The M800 comes with a 796cc 3 cylinder engine which puts out 37.5PS of power and returns 15-16kmpl with ease. TATA's saving grace could be the 2 cylinder diesel engine currently being used in the TATA Ace (ofcourse in a much more refined state.)

Apart from the threat from Maruti, the company has also been facing land problems in West Bengal recently. But lets all hope they do come out with the intended car, because the customer will win. With a cheap TATA car and a cheaper M800!

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