Tata Motors to launch bargain car

Aiming to enable more people in India and other developing nations to move up from two wheels to four, it will sell for 100,000 rupees or $2,500 (£1,277).

While exact details and even its name are still unknown, the vehicle, dubbed the "People's Car", is expected to have four seats and a 0.6 litre engine.

Although it seems a world apart from luxury Western cars, Tata is currently in talks to buy Jaguar and Land Rover.

Soaring sales

Tata's $2,500 car is being unveiled at the New Delhi motor show.

"The product has rightfully gained a lot of international attention"
Mohit Arora of JD Power Asia-Pacific

Its release comes as India's domestic car market is predicted to soar in the coming years on the back of the country's fast-growing economy and increased consumer wealth.

Indian car sales are predicted to more than quadruple to $145bn by 2016.

Western firms such as Volkswagen and Ford are also rushing to increase their presence in India, as it represents a giant untapped market.

At present just seven people per 1,000 own a car in India, compared to 550 per 1,000 in Germany, or 476 per 1,000 in France.

"The product has rightfully gained a lot of international attention," said motoring analyst Mohit Arora of JD Power Asia-Pacific.

"It's a big, big deal for Tata Motors, and will be recorded in history books, whether or not it does well."

At the start of this year, US car giant Ford announced that Tata would be the likely buyer of its UK-based Jaguar and Land Rover luxury brands, reflecting the Indian company's global ambitions.

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