The 1 lakh car to be costlier...but that's still cheap

India is quite intrigued by Tata Motor's '1 lakh' car. A recent report states that the 1 lakh tag would be ex-factory and that the showroom price would be Rs. 1.25 lakhs. Variants would be priced higher.

But that's still cheap. Compare this to the average price of 2 wheelers in India, and it would still be value for money.

Who are the potential buyers of this car? Obviously, people in the lower income group segments who, up till now could only afford to buy a 2 wheeler. But, hold on, don't count the middle / higher income group out. The car promises to be an excellent second car ( purchase ). Especially if it delivers on great mileage. The higher / middle income group consumers would use the first car for longer duration journeys, and the 1 lakh car for city driving.

Don't count competition out. Watch out for the response of the likes of Maruti Suzuki Motors and Hyundai Motors.


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