Tata revs up with world's cheapest car

By Rina Chandran

MUMBAI (Reuters) - Business baron Ratan Tata silenced critics 10 years ago when he unveiled Tata Motors' first car, the Indica hatchback.

His business acumen was again questioned as the truck and former locomotive maker hatched plans to build the world's cheapest car and buy Ford Motor Co's premium Jaguar and Land Rover brands.

But Tata has remained steadfast and successful: the Indica has sold more than 1 million units and Tata Motors has emerged as the preferred bidder for the luxury Ford brands.

On Thursday, the 70-year-old chairman of the Tata Group unveils the "People's Car", a mini 4-seater expected to be priced, as promised five years ago, at 100,000 rupees ($2,500), less than half the price of the cheapest car on the market.

"I have confidence in what we can do, provided we are critical enough about what we can do and we have a desire to improve," Tata said in a rare television interview last month.

"You have to have a belief that you can do something. You have to carry that belief through till the end or decide not to do it. What we should not do is a half-hearted job," he said.

The automotive world has taken note. Volkswagen, Toyota, Honda and Fiat have since said they are looking to build low-cost cars. On Tuesday, Ford said it would invest $500 million in India to make a small car.

And an alliance of Nissan and Renault, which has made a big success of its no-frills Logan sedan, is developing a $3,000 car with Tata rival Bajaj Auto Ltd.