Suzuki working on a potential challenger to Tata’s Rs. 1 Lakh car

Suzuki working on a potential challenger to Tata’s Rs. 1 Lakh car

Japanese automaker Suzuki is the largest automaker in the Indian market through the Maruti Suzuki venture and the company is now working on plans to develop a 660cc engine and a new low-cost small car platform from scratch for India.

This car could become a formidable competitor to the Tata Motor’s upcoming Rs. 1 lakh car, which is due for a launch in 2008.

Sources say that Suzuki is working on this project at their headquarters in Hamamatsu in Japan and this car would be out on the roads just around the same time as the Tata’s Rs. 1 lakh car.

Maruti’s director, sales & marketing Shuji Oishi admitted in a statement: “We are working on a mini car which would be lower than 800cc in engine capacity.”

Tata itself has admitted that they will not be able to price their car at Rs. 1 lakh at least at the launch time. Suzuki said that they are more or less likely to match the price with their new unit.

These two cars would be the first sub 800cc cars in the Indian market.