Rs 1 lakh car should not affect our sales: Khattar

New Delhi, July 5 (UNI) Maruti Udyog Ltd (MUL) Managing Director and Chief Executive Officer Jagdish Khattar today expressed optimism that the much hyped rupee one lakh Tata vehicle will not make any inroads into the company's popular entry-level 800 CC cars.

''We have no problem with the one lakh rupee car but rather it will benefit us through heightened competition'' Mr Khattar told reporters here on the sidelines of the launch of its new SUV, Grand Vitara priced between Rs 13.80 lakh and Rs 14.80 lakh.

Mr Khattar also said the interest rate effect has not yet peaked and is still affecting the sales of the company. Therefore, to overcome this effect, the company will offer customer discounts and dealer incentives.

Asked about any effect on the transportation system to its dealers in the country, where the cities are affected by rain and flood, he said atleast there is no problem as such for the time being and added that if it happens so, ''it will directly effect our market a lot.'' The company's export also rose to 50,000 units this fiscal over 38,000 vehicles last year and has set a target of around 2.2 lakh units by 2010 including its new markets in the UAE, Indonesia and Philippines.

However, Mr Khattar said the company is still studying these new markets and, ''will see the response and then only consider for more exports.'' UNI SRS MP PM1722