Notwithstanding what its detractors have to say, Telco’s Indica appears to be on an overdrive, if sales figures are any indication. In the July 2001-February 2002 period, Telco sold 42,399 Indicas, as compared to 41,997 Santros sold in the same period. Maruti Udyog sold 41,869 Zens, 16,598 WagonRs and 16334 Altos in the same period. Fiat sold 13,490 Palios in the same period.

Palio, the latest entry in the B-Segment has been a major hit with the Indian consumers along with the Indica V2. Both have been responsible for the evolution of the Indian auto market. "These two products have been responsible for the market moving upwards," an auto analyst said.

"People have been too quick to write us off, but we have created one of the biggest Indian brands, in the last three years," Rajiv Dube, general manager passenger cars, Telco said. " We will be showing a cash profit this year. Which other auto manufacturer can talk of a cash profit in just three years of entering the market?" Mr Dube asked.

"While the recent success of the Indica is being attributed to the Indica V2, one has to also acknowledge that Telco sold 100,000 Indicas, even before the V2 was launched," Mr Dube said. The company sold 6519 Indicas last month alone, while in January this year the company sold 7365 units of the car, Mr Dube pointed out.

And while the car itself has been a success on the roads, the various consumer awareness and marketing initiatives too have paid dividends for the company. "The market is evolving every day, and the consumers of today are aware and are looking for the best value for money, and we are competing with the global auto majors who are mostly all here in India today," Mr Dube said.

While Telco is now scouting to take the Indica to international markets, there are also efforts on to penetrate deeper in the Indian market itself. The lack of proper roads in the Indian hinterland, and cost of buying a car has resulted in the Indian auto market remaining shallow, Mr Dube feels.

The incidence of taxation on a car is around 50-55 per cent even today, as compared to a world average of around 18-20 per cent.