Bajaj Auto may make cars, says Rahul Bajaj

Facing the heat over the prospect of Tatas' Rs 1 lakh car affecting the two-wheeler market, Bajaj Auto today said it may build cars to ward off the threat.

"The JD power study says that it (Tata's one lakh car) will affect the two-wheeler market. If that happens then we would also manufacture cars for the market," Rahul Bajaj, chairman, Bajaj Auto said.

International consultancy firm JD Power said early this week the "people's car" from Tatas that will come out on the roads in 2008 could create a major dent in top-end motorcycle sales with its lucrative price tag, provided the corporate house gets the product right in the first shot.

Bajaj's statement is the first confirmation that the country's top three-wheeler and second-largest motorcycle maker was interested in developing a low-cost car.

The company had earlier announced it was developing a four-wheeler goods carrier scheduled for launch in 2009.

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Rs 1 lakh car a global case study: J D Power

The much-touted people's car from Tata Motors could create a major dent in the top-end motorcycle sales with its lucrative price tag, which has become a global case study, global consultancy firm J D Power said today.

"If Tatas are able to get quality and customer satisfaction parameters right, People's Car could shift buyers from a top-end two-wheeler on account of its safety and convenience factors," it said.

"The two-wheeler market in India could see a dent at the top-end because of the Rs 1 lakh car, but how far reaching will it be will depend on the product's performance, after-sales service and overall customer satisfaction," Mohit Arora, director (India), JD Power, said.

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