December 19, 2007 / 10:40 AM / 12 years ago

Tata Motors to unveil world's cheapest car in Jan

MUMBAI, Dec 19 (Reuters) - Tata Motors (TAMO.BO) (TTM.N), which is considered a front-runner to buy Ford Motor Co’s (F.N) luxury Jaguar and Land Rover brands, will unveil the world’s cheapest car at an auto show in India next month.

Tata Motors, India’s third-biggest auto marker will showcase its $2,500 car at the Auto Expo in New Delhi on Jan 10, with a commercial launch planned for later in 2008.

The company has promised to sell the car for 100,000 rupees ($2,500) although some analysts say high raw material costs may push the price of the “people’s car” closer to $3,000.

India’s Bajaj Auto (BJAT.BO), Renault (RENA.PA) and Nissan (7201.T) are looking into the feasibility of making a $3,000 car.

Indian media reported on Wednesday that Tata Motors, valued at $6.8 billion, has offered $2.05 billion for Ford’s brands. See [ID:nBOM202921]

Ford, which is spinning off the British luxury brands to focus on restructuring its loss-making North American operations, is expected to close the sale of Jaguar and Land Rover in the first quarter of 2008. (Reporting by Himangshu Watts; Editing by John Mair)

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