News: Rs 1 lakh car a global case study

(PTI 22/03/2007) New Delhi - The much-touted people's car from Tata Motors could create a major dent in the top-end motorcycle sales with its lucrative price tag, which has become a global case study, global consultancy firm J D Power said today.

"If Tatas are able to get quality and customer satisfaction parameters right, People's Car could shift buyers from a top-end two-wheeler on account of its safety and convenience factors," it said.

"The two-wheeler market in India could see a dent at the top-end because of the Rs 1 lakh car, but how far reaching will it be will depend on the product's performance, after-sales service and overall customer satisfaction," Mohit Arora, director (India), JD Power, said.

The progress of the car is being monitored by automobile industries across the world for possible replication in different markets. "Rs 1 lakh car is a case study the whole world is watching. If successful, the car can spark demand in a new segment. Brazil and China are looking for similar products," Gerrit Kuyntjes, managing director (Asia Pacific), J D Power, said.

The firm, however, cautioned that Tatas would need to get the product right at the first shot as the dynamics of the Indian automobile market have changed over the years. "Unlike Indica, in which Tata Motors got a second chance, it is doubtful if it would get a similar one with the Rs 1 lakh car as consumers have become more discerning and demanding," Arora added.