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Telco, Peugeot luxury car to cost Rs 1 million

Indian car and truck maker Telco Ltd said on Monday a new sedan it plans to develop with Peugeot-Citroen of France will be aimed at India's luxury market and carry a possible price tag of over Rs 1 million.

"It will be like the Honda Accord," Tata group chairman Ratan Tata told reporters after inaugurating a stall at the Indian Machine Tools Exhibition.

Tata Engineering and Locomotive Company Ltd (Telco) said it would use a two-box hatchback platform from Peugeot to develop the three-box car which would take two years to launch.

Telco is India's largest commercial vehicle company and made a serious entry into India's car market in 1999 with the Indica, a 1,400cc hatchback that has met limited success amid fierce competition from other carmakers.

Tata did not say which Peugeot platform the company would use. "I would let them (Peugeot) announce that," he said.

Peugeot is Europe's second-largest carmaker.

The joint development project would give the French company a car it could sell in Europe while it would give Telco experience with designing and developing automobile parts and systems, Tata said.

The new car will not compete with the "Magna", another three-box sedan which Telco was developing. It unveiled a prototype of the new model at India's automotive fair in early 2000.

Tata said the Magna's development was proceeding on schedule as was another three-box sedan being built on the Indica platform. All the three new models would be launched in two years time, he said.

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