Tata small car to be rolled out

Tata Motors will this week launch its long awaited 'people's car' in Delhi. Much is riding on the new four-door vehicle, a pet project of Tata conglomerate chairman, Ratan Tata. Its $2,000 price tag has the potential to give the market a dramatic shake-up, with competitors already considering their own versions.

However, there are doubts about its prospects. The rising cost of steel and other components threatens to eat into profit margins, and there are also concerns about the environmental impact of the car and about how it will fare against a sizeable and affordable second-hand market. The test will come with a commercial launch in India expected towards the end of the year.

India has emerged as a key production centre for global automobile manufacturing, while ownership has surged. The launch takes place amid growing speculation that Tata will soon acquire Ford's Jaguar and Land Rover brands, confirming the growing global status of 'India Inc.'