It is popularly called the first genuine people’s car. And though its price — it will be the world’s cheapest car — has spawned a plethora of jokes, nobody is taking it lightly. The Indian corporate world’s first family has done it in the past with the Indica, when it successfully built the country’s first completely indigenous car. So even the Tatas’ worst critics will not deny that if anyone is capable of pulling off the Rs 1 lakh car, it’s Ratan Tata.

There have been studies galore regarding what the Tatas’ small car will do to the passenger car market. While views vary, everyone agrees that both in success and in failure, the Rs 1 lakh car will have a dramatic impact.

International automobile consultancy J D Power believes that provided the Tatas get the product right, the car with its attractive price tag will make a major dent in the top-end motorcycle segment. In other words, it will lure customers away from bikes like Karizma, Pulsar 200-220cc, and the Avenger.

A study by the Associated Chambers of Commerce (Assocham) on two wheelers versus small cars arrived at more or less the same conclusion. Covering about 3,000 potential customers in metros and semi-urban areas, the study revealed that the Tatas’ car could capture as much as 25 per cent of the two-wheeler market. This translates into a market size of over 19 lakh at the very outset, making it not only the largest-selling car in India but globally as well from its very first year.

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