The Tatas have been under attack from green activists, who argue that Tata Motors' ultra-cheap car Nano would add to congestion on Indian roads and pollution. Ratan Tata, however, said the people's car meets all emission requirements.
Asked how the company plans to fight back the negative propaganda, he asked: "Why don't we let the market decide?"
Tata Motors Managing Director Ravi Kant said 50 Tata buses, powered by biofuels, were running in Pune for the last two years.
The company is also understood to be looking at the feasibility of an electric vehicle based on the platform of its mini-truck Ace.
Also read: The world's 5 cheapest cars
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