Those who booked a Mercedes E220 were reportedly targeted by the tax man. Tata is not discouraged. We re getting out of the syndrome of just getting orders, then making the vehicles, he says. The new E-class, which has superseded the E220 in other markets, will be assembled in India this year. Many Indians feel that the E220 is an obsolete car, says Tata.
Price remains an issue.
The new venture will change the entire nature of the industry in India, predicts aviation analyst Joseph Thachil. The airline business needs large amounts of capital. Only a venture with big players such as Tata and SIA could really get a handle on it. Indian Airlines a real run for its money. First, the short-lived 1996 administration of the Bharatiya Janata Party rejected the application, saying the venture was not in the national interest.