In the face of serious reservations over Tata Group’s proposed people’s car, Chairman Ratan Tata, in an interview with the Financial Times, defended the project stating that “we are producing a car that will be no more polluting than a motorcycle.”

Tata Motors, automotive arm of the over Rs 3 lakh-crore market value group, is scheduled to unveil the vehicle, touted as world’s cheapest mass-produced car, on January 10 at an auto expo in New Delhi.

Rival car makers are, however, not convinced about the safety and emission standards of the car, coming as it is at that price level. Mr Ratan Tata told the Financial Times, which has named him among three entrepreneurs making their presence felt around the world, “as we are not going to produce millions and millions of them, inundating the country, we will not be adding to carbon footprint on a per-passenger basis.”

The Tata Group Chairman’s defence comes in the wake of serious observations made by Nobel Laureate R K Pachauri that it could have serious consequences on the environment in the country.

Big gap

The report said that there was a big gap between cost of the average two-wheeler and entry-level cars such as Maruti 800, which retails for about $5,000, and Tata plans to fill it. “The only reason we did not make the Rs 1-lakh car a hybrid, for example, is that it could not have been priced at Rs 1 lakh,” said Mr Ratan Tata pointed out.

The Financial Times said Mr Ratan Tata would be one of the most visible faces of the new India in 2008. Mr Ratan Tata, who incidentally celebrated his 70th birthday on December 20, said he would like to retire from active business life after his dream project — the Rs 1-lakh car — is launched successfully.

“In an ideal world, after small car has been launched and is successful, that would be nice time for me to exit.” Further, asked whether he has “the fire in his belly for further five years,” he said “Not Really.”