Tata in talks for using GE plastic for small car

Tata Motors Ltd is exploring the possible use of re-engineered plastic supplied by General Electric Co for its Rs one lakh small car it hopes to launch in two years.

Tata Motors Ltd is exploring the possible use of re-engineered plastic supplied by General Electric Co for its Rs one lakh small car it hopes to launch in two years.

8216;8216;We are keen to explore this area with GE 8230; GE8217;s CEO Jeff Immelt is also very keen,8217;8217; Ratan Tata said at the company8217;s annual general meeting. 8216;8216;It could reduce the time to market,8217;8217; Tata said, but would not cut the cost of the car.

Tata Motors, country8217;s third-biggest car maker, aims to launch the car, priced at below Rs 100,0008212; or less than half the price of a basic car from market leader Maruti Udyog Ltd8212; in 2008.

Tata has said the car, his dream project for many years, would also use some modern adhesives instead of welding to cut costs. Prototypes of the car 8212;which will have four doors and a rear engine with petrol and diesel variants8212;are already being tested at a Tata Motors plant in western India.

Tata Motors said in May it planned to invest about Rs 1,000 crore in a plant in West Bengal to make the car.

The company has not indicated what the plant8217;s capacity will be but on Tuesday, Tata said the 8216;8216;addressable market8217;8217; for such a car8212;which would be affordable to millions of Indians who currently use motorcycles8212;would be about 1 million units a year at a 8216;8216;mature stage.8217;8217;

India8217;s passenger vehicle market is forecast to nearly double to 2 million units in annual sales by 2010.

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Small cars make up more than three-quarters of the market now. Meanwhile, speaking on the Tata-Fiat tie-up Ratan Tata said that the company was also looking at the possibility of joint manufacturing of cars at the Italian carmakers plant in Ranjangaon, Pune.

8216;8216;We are also looking at the option of developing products jointly and exchanging products. It is a broad-based agreement which will develop based on needs, rather than contractual obligations,8217;8217; Tata said.