Our Goal is the international market in the long term. We aim for 15 per cent of business from the international market.

In March 1999, when India’s first indigenous car – Indica – was launched, critics were harsh about its performance. They wrote it off due to the numerous complaints registered against its functioning. Today, three years later, the car has a different story to tell.

The first passenger vehicle from the Telco stable, Indica is ready to take the world by storm after establishing itself in the domestic market.

Says Vice President (Commercial), Telco, Rajiv Dube, "Our goal is the international market in the long term. We aim for 15 per cent of business from the international market."

Indica rules supreme in India with over one-lakh cars wold even before the launch of the V2 version. Telco should end this year with sales of over 60,000 cars and is slated to grow to 80,000 plus in the next year. The reliability issues are things of the past.

Says Dube, "This year we are practically running neck-to-neck for the number two position with Hyundai. Much was made out of teething issues than the facts on the ground."

While their initial exports have been 3,000 cars per annum, Telco is planning to increase this gradually. "We are exploring other markets, but it is too early to make a call as rules are different every where," avers Dube.

But the boys from Bombay House have a fight on their hands because they will be competing with global auto majors on their home turf, especially Western Europe.

Says Dube, "Consumer demand is quite distinct in the developed world. Emission norms are stringent. It is more a question of consumer perceptions. The price points and high expectations about value make marketing an arduous exercise."

Telco has drawn up a clear cut strategy that highlights the fact that their only competitor is Palio in the B segment as compared to others who manufacture lower B segment cars. This is their USP in a market dominated by luxury and super premium cars. They expect demand from Spain, Malta, Italy and Portugal and are striving for markets in UK, Iran and China.

Realising the potential of Indica, Telco modified the model and launched Indiva – a MPV concept – at the Geneva Auto Fair in Switzerland, early this year.

Says Jigar Shah, head (Research), Kisan Ratilal Choksey Shares and Securities, "Indiva is a monobox concept car based on Indica platform. The monobox concept is essentially a modern iteration of what we traditionally know as a van. The Indiva, thus, falls in a people-moving category, a segment that is a rage in Europe."

The Tata Sedan is likely to be launched in the second half of the next fiscal year. The Sedan has been styled by IDEA – the Italian design house that penned Indica. The result is a well-proportioned but conservative-looking mid-size car.

Says Jigar Shah, "It is believed that the car is of global standards. The Sedan volumes would add to company’s profitability in times to come."

Says Dube, "Efforts are on to build a brand in reply to Indica’s marketing strategy. But Indica has emerged as one of the strongest brands created in the last decade. The car market is all about brands and after-sales support. We have always made efforts to strengthen the brand, not sell it through gold coins, seat covers or free insurance."