Small Wonder

The Citicar’s prototype had a two-wheeler engine that generated 18 bhp, an automatic transmission, space for two adults and two small children, and a lightweight space frame construction. “We were planning to offer the Citicar, which could deliver as much as 24 kpl in city conditions, at an EMI of Rs 3,000,” said Firodia.

The vibes were good, the time was, more or less, ripe, but Kinetic’s small car project came unstuck due to apathy on the part of the government. “Those were times of political instability at the centre, plus our request for a reduction in the excise duty to 16 per cent (the duty applicable on two-wheelers) never materialised.”

Five years later, the business environment is a lot more liberalised, but those in the industry, and automotive experts feel that Tata too could get bogged down in a similar quagmire.

“First of all, we have to define what constitutes a car. The 800 remains the most economical car around, and it’ll be pretty much impossible to make a car at the 800’s price. We’ll have to wait for the parameters defined by them for their car,” says Ravi Bhatia, general manager, marketing, Maruti Udyog.

The Tatas, according to their statements in various fora, are intent on a plan very similar to Kinetic’s, with “use of components from the region’s large scooter and motorcycle industries to create a basic $2000 four-seater, four-door car.”

“We would not like to comment on any aspect of the Rs 1-lakh car at this time. The plans are, of course, on track,” says a Tata spokesperson.

While experts concede that it is theoretically possible to manufacture a car priced this low, they are not so sure of its slot, marketability and conformance to future norms. “They will have to bring about a change in legislation to manufacture a car like this. Technically, it is possible, but there are other facts to consider, too. What will happen if emission and safety norms are tightened. Will the car meet them? It will have to be in an altogether different category,” says Hormazd Sorabjee, editor, Autocar India.“Moreover,” adds Bhatia, “the government has said that they would look at bringing the excise duties down, but when and how fast is anybody’s guess.” While issues such as excise are in the hands of the government and technical feasibility is an issue for the Tatas to sort out, there are other, more tangible obstacles.

Like the emergence of a booming used car market.

“It’s been five years since the small mid-sizers were launched and these are increasingly finding their way to the used car mart. Plus, there are great deals to be had as far as small cars go too, which makes one wonder whether people would really opt for the Tata small car,” feels Vinay Piparsania, director, corporate affairs, Ford India.

Perhaps, a high-profile Mumbai-based car dealer and long-time observer gets it spot on when he describes the

Rs one-lakh car as great, but a very, very ambitious one. Kinetic, meanwhile, once bitten…, has no intention whatsoever of removing its City car from the backburner, preferring instead to concentrate on the two-wheeler market.