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S. Muralidhar

Rarely has an automobile been at the centre of as much speculation as the proposed Rs 1-lakh car from Tata Motors. The announcement from the Tata Sons Chairman, Mr Ratan Tata, that the company will be setting up the assembly plant for this small-car project in Hooghly, West Bengal, finally clears some of the speculative smog surrounding the plans.

By locating the project for manufacturing what is widely believed to be the people's car for India, in West Bengal, which is headed by a Left Government with a reformist face, the Tatas will also be sending the right political and emotional signals to potential buyers of this proposed car.

With many of the group's projects located, or proposed to be located, in or near West Bengal, the Tatas will also be able to leverage the infrastructure and relationships with labour in the region that has already been developed by companies in its fold.

In addition to the special benefits the company may have been offered by the State Government, the location could also help Tata Motors tap the market in Bangladesh, where the group has been eyeing a larger presence.

More Stories on : Cars | New Projects | Tata Motors Ltd | The Big Deal

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