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Tata Indica exports after meeting domestic demand; moves afoot to make it Euro-II-fit

Tata Engineering and Locomotive Company -- Telco -- does not intend to immediately address the export market with its small car, the Indica.

The foray into the export markets with the Indica would commence only after meeting the initial requirements of the domestic market, company soures said.

''We do propose to export the Indica, but we will wait to satisfy domestic demand first,'' the sources added.

However, the company will commence development of the export model, work on homologation and ensure that the car meets all the norms of the markets abroad.

Telco has booked close to 115,000 orders for the Indica, of which 60,000 have been retained for supply till March 31, 2000. The company had targetted production levels of 5,000 units per month to meet the demand. But it has been able to achieve only 3,000 to 4,000 units per month as yet.

The company has estimated about Rs 50,000 surge in production costs per vehicle for the modifications required to make its passenger cars, particularly the Indica, conform to Euro-II emission norms.

Telco sources said the company is working aggressively towards making all its passenger vehicles Euro-II compliant. ''Though no dates can be given at present, we are confident of making our vehicles meet the emission norms soon.''

Though production costs are expected to go up, it is yet to be decided if this would translate into an increase in the final price tag of the vehicle.

The sources further pointed out that though the company is in talks with its vendors for supplying the specialised components for meeting the norms, ''We are also open to direct imports if need be.''

''Our cars already meet the Euro-I norms and it would not be much of a problem for us to make them Euro-II compliant...It will be done soon.''

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