NEW DELHI, Jan 9: Telco's much-awaited small car is expected to take the country's two largest selling models - the Maruti 800 and Zen - head on. Telco's 1400 cc car, expected to be priced between Rs 2.5 lakh and Rs 2.7 lakh, will compete with both Zen and the 800 model not only in terms of price, but also in terms of engine capacities.It is understood the Telco small car is six to eight inches wider than the Zen and nearly 5 inches longer. This translates into more leg-space for passengers. Telco chairman Ratan Tata is unveiling the yet-to-be-named small car at the Auto Expo here on January 15.
The Telco 1400 cc car is bigger than the 993 cc Zen or the 800 cc Maruti model. Competition will also be on the price front as the Maruti 800 costs about Rs 2.3 lakh in Delhi and Rs 2.44 lakh in Mumbai, as against the Zen (manual transmission), which is priced at Rs 3.45 lakh (Delhi). Industry observers say Telco's car will have an advantage over Maruti with the launch of its diesel version. Telco's move has
prompted other car majors to consider diesel versions for their models too. Maruti Udyog Ltd is considering a diesel version of Zen. Sources said Telco was building a capacity of 150,000 cars and hoped to break-even in the first full year of operations.
Kinetic seeks excise sop
Kinetic Engineering Ltd has sought an excise concession of 15 per cent from the Centre on its `micro car' which will roll out in October. The company, which has pegged the price of the 500-cc car at Rs 1.25 lakh (ex-showroom), has asked the government to levy 15 per cent excise (the rate on two-wheeler category) and not 40 per cent which is applicable on cars. Kinetic Engineering CMD Arun Firodia told The Indian Express that "we have also sought sales tax exemption from the Maharashtra government as the tax here is the highest." ``We are waiting for the government's decision on the excise relief, he said. The ex-factory price of the car is around Rs 90,000,'' he said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
