Bajaj Auto could make cars: Rahul Bajaj

Indore: Bajaj Auto says it may build start making cars to ward off the threat from the Tata Rs 1 lakh car.

"The JD power study says that it (Tata's Rs 1lakh car) will affect the two-wheeler market. If that happens then we would also manufacture cars for the market," Rahul Bajaj, chairman, Bajaj Auto said.

International consultancy firm JD Power last week said that Tata's people's car expected to be launched in 2008 could create a major dent in top-end motorcycle sales with its lucrative price tag, provided the corporate house gets the product right in the first shot.

Bajaj's statement is the first confirmation that the country's top three-wheeler and second-largest motorcycle maker was interested in developing a low-cost car.

Although Bajaj Auto is the second-largest motorcycle maker in the country after Hero Honda, it has an upper hand in high-end bikes with its runaway success Pulsar.