Micro-bus avatar for Tata`s Ace  ( July '3,2006, BS)

Tata Motors is developing a micro-bus based on its successful mini-truck platform, Tata Ace.

Industry experts say this new passenger vehicle can take on the only van manufactured in the country, Maruti Omni, and may also find a market in the rural transport vehicle sector.

A Tata Motors spokesperson refused to comment on the issue. However, at the time of launch of the Ace in May 2005, company executives had indicated that the Ace could lend itself to being transformed into a passenger vehicle.

The company plans to use the Tata Ace’s design and build on it a full-bodied vehicle. A picture of this micro-bus is available with Business Standard.

The market for vans in India, with their utility ranging from transporting passengers to light cargo, is limited. The Maruti Omni clocked sales of around 66,000 units in 2005-06, registering near-flat growth over the 65,000 units sold in 2004-05.

While the dimensions of the Tata Ace are slightly larger than Maruti Omni’s, it runs on a smaller 700cc engine (the Omni is powered by a 796cc engine).

Another difference between the two vehicles is that while Maruti Omni is currently available only in petrol and LPG versions, the Ace is run on diesel.

Maruti Omni is sold in an ex-showroom price band of Rs 1.92-2.56 lakh in New Delhi, while the price of the Tata Ace, even as an open-back cargo mover, is Rs 2.5 lakh.

Tata Ace’s success since its launch has made the company plan a capacity expansion for the second time.