Speaking to shareholders at the company's 54th annual general meeting, Tata said the production of Indica will stabilise at 5,000 units by September. "Telco has delivered 14,000 Indicas till July-end and has cornered a market share of over six per cent," Tata said. ``Our share would have definitely been higher had we been in a position to deliver the vehicle on demand," he said.

The Telco chairman added with regret that the Maharashtra government has not yet cleared the sales tax concession aggregating Rs 170 crore. "We have invested Rs 1,700 crore on the Indica project. It is unfortunate that the project is not being recognised (by the state government) as an important investment," Tata said.

The Indica project, Tata said, will "truly" break-even only after the annual production touches 80,000-90,000 cars. The company,however, hopes to break-even at the PBT level once the output reaches around 65,000 cars annually.

The current year, according to Tata, is already showing signs of a revival and the automobile industry may benefit from the industrial upturn and the robust agricultural growth. "We are confident about the future of the transportation industry. Freight rates are moving up and the demand for trucks is also rising, Tata said.

According to Tata, the passenger car segment will witness unprecedented competition in the coming years as most leading car manufacturers have set up base in the country.