After the successful launch of no frills' hotel, the Tatas have said their peoples' car would hit the road in three years despite scepticism among the arch rivals of Tata Motors on the feasibility of the Rs one lakh car. "The Rs one lakh car is being developed by us. It will hit the road in three years," Tata group chairman Ratan Tata told PTI. The proposed peoples' car would not be a stripped down version of any existing car, rather it would be a ground-breaking experience for Tata Motors, he said. 

Contesting the claim of the Tatas to develop the Rs one lakh car, Maruti Udyog, which makes the cheapest car 'M-800', said it would be impossible to make the car at such a price point while India's second-biggest carmaker Hyundai said the vehicle would not be able to meet safety and emission norms. Brushing aside the speculation on the feasibility of the car, Tata said its upcoming car would not be a no-frills car, rather it would be a car which could accommodate 4-5 people and adhere to all the requisite safety and emission norms.

Earlier, a senior Tata Motors official had remarked "all the best to Maruti," when asked about Maruti's assertion that it would meet the challenge of Tata Motors to develop the Rs one lakh car. A top Maruti official doubted the idea of an entry-level car with Rs one lakh price saying it did not look feasible.