Tata Engineering and Locomotive Company is considering setting up a manufacturing base in China, one of the largest markets of the world, and has an ambitious plan of introducing a basic entry-level passenger car at Rs 1 lakh. “We are looking at new markets to increase the exports of Indica. China, and middle west Asia are being considered.

In China we cannot export from India due to extremely high duties in that country and thus we are considering having a manufacturing base there with a local partner,” vice-president, commercial passenger car, Rajiv Dube said at the sidelines of the launch of Tata Indigo sedan in Kolkata. “The process toward this has already started,” he added. The company, meanwhile, is targeting sales of one lakh units. “We will clock sales of over one lakh units combining all models excluding exports.

The total exports will be around 4,000 units, the same level achieved last year,” Mr Dube said. Telco has sold 63,117 vehicles till November-end, of which over 48,000 were Tata Indicas. The Tata group owned car maker hopes to cross the one lakh mark for its passenger cars and introduce Indica Sport and petrol Safari models in the current year. The company, following the success of the Indica model in the domestic market, is now focusing on promoting the model in the international market.

It has recently signed a pact with MG Rover group of UK for OEM supply for Indica. Telco’s agreement with Rover provides for manufacturing the former’s passenger car Indica according to MG Rover’s specifications at its Pune facility and selling them in Europe under the Rover brand name. Telco, however, has retained the right to sell Indica under its own brand name outside the UK. This means that the Indica could be sold in Europe under two brand names. Telco has already exported small volumes of the Indica to countries like Malta and Italy.