High input cost a challenge for Rs 1 lk car

New Delhi, Sept 5: Tata Motors today reiterated its commitment to launch the Rs one lakh car by mid 2008, but said high input cost is a challenge to maintain the price.

''We are trying to keep the price of car at Rs one lakh but the cost pressure is a challenge before us. The input cost has risen in these three years,'' Tata Motors Managing Director Ravi Kant said on the sidelines of a SIAM annual conference here.

Expressing concern on the rising interest rates, Mr Kant said it has toned down production and there is no likely improvement in the situation in the short term, rupee appreciation has also impacted the export.

''High interest rates are pulling down domestic demand on the other rupee appreciation has hit exports. Interest rates needs to be stabilised.'' Tata Motors 's JV in Thailand will become operational by next year.

UNI