After the successful launch of 'no frills' hotel, the Tatas have said their people's car would hit the road in three years despite scepticism among the arch rivals of Tata Motors on the feasibility of the Rs 1-lakh (Rs 100,000) car.
"The Rs 1-lakh car is being developed by us. It will hit the road in three years," Tata group Chairman Ratan Tata said.
The proposed peoples' car would not be a stripped down version of any existing car. Rather, it would be a ground-breaking experience for Tata Motors, he said.
"We are breaking new ground and have set a hard task ahead in terms of cost," Tata said.
The proposed Rs 1-lakh car would not be fancy, but one that would bridge the gap between two-wheeler and current passenger cars, he said.
"The car will have an identity in itself which will meet global safety and emission norms," he said.
Contesting the claim of the Tatas to develop the Rs 1-lakh car, Maruti Udyog, which makes the cheapest car 'M800,' said it would be impossible to make the car at such a price point.
India's second-biggest carmaker Hyundai said the vehicle would not be able to meet safety and emission norms.
Brushing aside the speculation on the feasibility of the car, Tata said its upcoming car would not be a no-frills car, rather it would be a car which could accommodate 4-5 people and adhere to all the requisite safety and emission norms.
Earlier, a senior Tata Motors official had remarked: "All the best to Maruti," when asked about Maruti's assertion that it would meet the challenge of Tata Motors to develop the Rs 1-lakh car.
A top Maruti official doubted the idea of an entry-level car with Rs 1-lakh price saying it did not look feasible.
However, Maruti would meet any challenge posed by the Tata group company at the entry-level car, he said.
Earlier this year, former deputy prime minister L K Advani had urged the Indian industry to come up with a low-budget car costing around Rs 1-lakh.