Putting the Tata initiative into perspective, is the fact that the company has proved what can be done technologically by an Indian company. More importantly, Telco's efforts reveal that Indian companies can also take on the might of the outsiders the likes of the Japanese and the South Koreans. A case-in-point for which is the likelihood of both the pretenders to the MUL thronenamely-Hyundai and Daewoo likely to follow suit and cut prices.But perhaps, the most poignant issue that has surfaced as the aftermath of the Indica launch, has been the expose of what was a joint-sector company, promoted to give Indians the best buy on Indian roads. MUL had set up shop in India with heavy concessions, which was perhaps the clincher for the company's triumphant and virtually unchallenged progress. Obviously, a high level of indigenisation and technology also helped price the 800cc vehicle cheaper than ever before.

But perhaps, Suzuki's reluctance to transfer technologies, a prime example of which was the banter over the gear box transfer and the recent bout of political wrangling over the succession issue, revealed the tension below the calm exterior. Furthermore, with the Indian auto industry fast becoming a volume game to ensure viable margins, capacity expansions also became a must. However, with approval for the Rs 1,500 crore expansion programme not forthcoming, price hikes werenecessitated. MUL slashed prices of the 800cc and Zen variants at the eleventh hour on Wednesday, to steal the Tata thunder, largely by prempting the price of the Indica and outflanking competition. Little did the management of the company, that was supported by government largesse, realise the blunder that it was committing. By slashing prices, the MUL management has only reinforced the belief that it had been taking Indian consumers for a ride all this while.