Tata Engineering is to begin deliveries of its three box sedan Indigo from Saturday.
The company currently has an order book for over 2,000 Indigos and has been getting a "good response" since the car's launch last month, sources said in Mumbai Friday.
The company's Pune plant presently manufactures around 225 units a day and since the Indica line is flexible the company could step up production on demand, sources said.
According to one dealer, the demand in the next one month is not likely to pick up as the budget for 2003-04 is due to be announced shortly. Moreover, the Kelkar panel has called for cuts in excise duties for the automobile sector.
The car, which was launched on December 18, has been priced much lower than some of its competitors in the new mid-size C segment, at Rs 4.35 lakh to Rs 4.95 lakh (Rs 435,000 to Rs 495,000) in petrol and Rs 4.8 lakh to Rs 5.2 lakh (Rs 480,000 to Rs 520,000) in diesel versions.
Indigo would be available in five variants - three petrol and two diesel models - and the company has targeted to sell about 1,200 units per month.
The company has 100 dealership showrooms and is backed by a 436 number strong service network across 168 cities in the country.