Tata Vs Bajaj : War on words

There's no doubt Ratan Tata had only good intentions when he said he conceived the Rs one lakh car as he cared for the safety of those using two-wheelers. But Bajaj Auto Chairman Rahul Bajaj thinks its just a ploy to market the vehicle. "He has to sell his car... so he has to speak like that," Bajaj shot back when reporters asked him about Tata Group Chairman Ratan Tata's remark that one of the major reasons for him to decide on the 'people's car' was the concern for safety of those travelling by two-wheelers.

Two-wheelers are sold all over the world, it has been proven that they are safe, he said, adding his company's products were safe. Bajaj also denied that the advent of Rs one lakh car would affect the two-wheeler manufacturers. "Ultimately it is the customers who will decide what they want," he said. Tata had said that the Rs one lakh car would mark a paradigm shift in the way India travels and will draw customers from the two-wheeler segment as well as from the lower end of the four wheeler segment.

The small car to be powered by a 600 cc engine, which could have air conditioning option and seat four to five people, is widely considered to be a threat to the two-wheeler segment. Tata Motors is in the process of building a plant in Singur in West Bengal for the people's car, which it hopes to roll out by next year. The price differentials between the small car and the high end motorcycles likes of Bajaj Pulsar 200 cc, the to-be-launched Pulsar 220 cc and Hero Honda Karizma are expected to be minimal.

Source:Economic Times