Tata’s all new small car codenamed ‘Dolphin’

Now that Nano sales have started picking up, India’s top commercial vehicle maker Tata Motors has quietly moved ahead for the development of yet another small car on a completely new platform.Tata Motors is working on an all new compact small car codenamed Dolphin targeting customers who can shell out little more.Sources say the all new car will be positioned between the Nano and Indica Vista and is likely to be priced around Rs 3 lakh.It will be developed on an all new platform and is expected to be powered by an 800 cc to 1 litre engine.It will be positioned below Fiat’s new small car and is likely to ready in the next 18-24 months.

When contacted Tata Motor’s spokesperson said:  “The company does not provide any guidance on its product plans.”Experts say having a presence in the compact car is absolutely critical for Tata Motors as it is one segment where it is absent. The segment constitutes close to 50 percent of the total small car market. However, the bigger question is whether the entry a little too late.“I think a lot of people will get into that get segment but I don’t think it is too late for Tata Motors to enter in that segment. I think Tata Motors has its strength of engineering a car at a low cost and they will be able to make profits and this segment will play to its strength,” said Hormazd Sorabjee, editor of Auto Car India.

The rural demand would only drive the growth in the segment.”India is a very under penetrated market and upbeat rural growth certainly means there would be a strong demand. The rural demand is primarily into the compact segment. Rural consumers want cars which are durable, long lasting and have a lower cost of operation and that only Maruti and Tata Motors can offer,” said Prayesh Jain, an auto analyst at India Infoline.
Industry sources say it is Tata Motors’ farewell gift to Ratan Tata. The engineers are making it sure that the new car does not face any teething troubles like the Indica and the Nano did. However, what remains to be seen is its success as by the time of its launch the market will be already flooded by similar cars by global majors.

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Source:NDTV 12/4/10

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