News: Tata takes the Beetle route

(DNA 20/05/2006) Kolkata - Ratan Tata's people's car will be made in the Marxist bastion of West Bengal. But the car, which will have a rear engine and seat five people, may cost a bit more than Rs1 lakh when it hits the roads in 2008.

A Tata Group source told DNA that two prototypes of the car have been built at the Tata Motors facility in Pune. One is a two-seater and the other a four-seater that can actually accommodate five. The indicative cost tags are currently Rs1.20 lakh and Rs1.50 lakh, respectively. Efforts are on to squeeze costs further so that the final price is closer to Tata's vision.

Tata Motors engineers are working frenetically to give finishing touches to the prototypes as they have been targeted for unveiling at an auto show next year.

While no formal decision has been taken on commercialisation of the two-seater, the four-seater will have four doors and a rear engine.

Many all-time favourites, such as the Volkswagen Beatle, the Fiat 500 and 600, the 1970s model of Skoda, and almost all thoroughbred racing cars have sported rear engines.

Why so? Apparently, when the engine is at the back, there is no need for a bonnet and a drive shaft, which means a saving on costs. Says car enthusiast Tutu Dhawan: "A rear-engine car needs lesser spare parts. Besides, it ensures efficient use of power."

All the weight in the Tata car will be borne by the rear axle, thus ensuring little loss of power while driving. "In fact, every ounce of power developed in a rear-engine car has to be used to propel the wheels because of the small engine," says another automobile expert.

Tata has said that he is looking at a 'gearless' vehicle. While it will be a full-fledged car in every definable way, the dream machine may not have the finish or high speed of a larger car.

The Rs1,000 crore project will be located in Hooghly district, Tata announced in Kolkata on Thursday. It will be spread across 1,000 acres and have additional facilities for an integrated vendor park.

A source said the financial viability of the car hinges on very efficient inventory control and vendor management system. The system will have to ensure almost nil carrying cost of components and raw materials. While most vendors of auto companies are located in close geographical proximity to the production line, locating most vendors within the plant site will maximise inventory control and production planning.

Tata said the decision to locate the project in West Bengal "is a reflection of the confidence of the Tata Group in the investment climate and the Government of West Bengal. We look forward to the opportunity of revitalising the automotive industry in the state."

He said the plant will initially employ 2,000 persons directly but will create employment in excess of 10,000 amongst vendors and service providers in its vicinity. The plant will be commissioned in 2008.