With the company ramping up production gradually, the premium on Indica is declining to more realistic levels. As against the premium of around Rs 60,000 when the car was launched late last year, Indica is currently enjoying a premium of around Rs 25,000 to Rs 30,000. It is expected to decline further as the company ups production in the coming months.

Company officials justify the slow ramp up in production to the learning curve and the high quality standards. Telco is hoping to touch the full capacity of 12,500 Indicas a month in March 2000 but that would depend on the ability of the market to absorb that volume.

Currently, there are 23,451 Indicas on road as of end-September and it hopes to complete deliveries for those customers who were given allotment. The initial allotment figure of 60,000 has since reduced to around 40,000 consequent to cancellations. Telco completed delivery of first 10,000 vehicles by end-June and 13,450 units were sold in the months of July, August and September. Balance deliveries are expected to be completed by end of this year after which Indica would be available off the shelf on a `first come first basis' from January.

Indica's sales grossed 5,044 units in September crossing 5,000 units a month for the first time since the launch. `DLE' model continues to be the fastest moving version. Almost 85 per cent of the vehicles sold in South is the DLE model. Though Indica did suffer from some initial problems such as noisy air-conditioners, slow pick-up and a faulty fan belt, Telco seems to have overcome it. The company has changed the compressor to remove the noise while a new pump has been fitted to take care of the pick-up.