Tata Motors developing electric cars

Mumbai: Tata Motors is developing an electric car, besides a host of eco-friendly, hybrid, bio-fuel and compressed-air run cars, said the Chairman, Mr Ratan Tata.

“We are looking at the creation of an electric car. This financial year we are doing it for Norway. And we hope to launch it in other markets in the next financial year,” he said. The company is also working on a compressed-air car project.

“We have been working with a company in France. It will be completely free of pollution. It is a technology which could have some promise. It may happen. It may not happen,” he said. “We will be looking at hybrid vehicles. We are looking at how we can enter in the area of bio fuel. We have launched a project in that area,” he added.

Responding to shareholder queries on the company’s Thailand eco-car project, he said, “The eco car will be a much more fuel efficient version of Nano.” In fact, the super-cheap Nano, also from the same stable, slated for launch in the last quarter of this year, will have a mileage of 23 kms per litre.

Earlier in his address, Mr Tata countered criticism on the Nano, that it would create more pollution and congestion. “Nano will cause 12 per cent less pollution than even two-wheelers. It will pollute less than most of the other cars,” he said.

As for congestion, he said “India sold 1.2 million cars last year while China sold eight million cars. Already there are 14.5 million cars and 80 million scooters on the road. No one can really argue that we are creating congestion,” he said. We need more roadways to reduce congestion. “China produces 90,000 km roadways but we produce just 36,000 km roadways. I don’t think it is fair to blame Nano for congestion,” he said.

“Has a company done something wrong in developing an all-weather small family car for the people of India?” he asked. The Nano plant in Singur is nearing completion despite flood-related problems. “The site has been flooded and the work has slowed down. Nevertheless, we are working to launch it in time,” he said. He said that Nano will be initially launched in petrol, followed by the diesel versions.

He said that Jaguar and Land Rover with their “tremendous engineering competence” and “an extremely interesting set of products” would bring higher revenues to the company. About retailing Land Rover in India, he said “The price will be higher as they are imported from abroad. It would be in the range of Rs 60 crore to Rs 120 crore. Volume may not be large, but there will be presence,” he said.

The increasing raw material cost, crude oil prices and inflation will make it a difficult year, he said, but not a bad year, he clarified. “All are looking at automotive industry slowing down. We are confident that we can survive the situation.”