Tata Motors to Enter Two Vehicles in Automotive X Prize

By Eric Boyd on May 15, 2008 8:50 AM | Permalink | Comments (0) | TrackBacks (0)

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It says on the Tata Motors website that "Tata Motors is committed in letter and spirit to Corporate Social Responsibility." Today, the Progressive Automotive X Prize announced that Tata Motors Limited (NYSE: TTM) has signed a letter of intent to compete for the $10,000,000 prize. Tata intends to enter a vehicle in both the mainstream class and the alternative class, giving them a shot at all of the money. All we know about the vehicles so far is this sentence from the press release: "the team intends to enter a pure e-drive micro car into the Alternative Class and Dominant Electric Hybrid vehicle into the Mainstream Class." The image is the Tata Nano, which (once it enters production) will be the cheapest car in the world, at about $2500 new.

By any measure, you could call Tata a major car manufacturer: revenue in 2007 was US$7.4 billion. I wrote a widely read article about major car makers and the Automotive X Prize back in February. Tata has a lot to gain from the Automotive X Prize. If you read their company profile, you learn that most of the companies 4 million vehicles on the road are large commercial vehicles (for instance, they own Daewoo, the Korean company whose trucks many Americans are familiar with, they also make buses). Their passenger vehicles division is fairly new - the 1998 Tata Indica became India's first "fully indigenous" passenger car.

So my calculus is that Tata is joining the Automotive X Prize in order to build their name recognition as a passenger car company. And, of course, they have a great home market for any resulting 100 MPGe vehicle. I look forward to learning more about their team and vehicles - it will be interesting to see how many resources they assign to this effort - and I look forward to seeing a page on their website which links their Corporate Social Responsibility mandate to this prize. That should encourage other major car makers to join as well.

Read on for the complete press release from the Progressive Automotive X Prize.

Tata Motors Limited Intends to Compete in Multimillion Dollar Progressive Automotive X PRIZE

India's Leading Automobile Company Joins More Than 70 Groups From Around the World in Competition to Create Viable, Safe and Super Fuel-Efficient Vehicles

SANTA MONICA, CA--(Marketwire - May 15, 2008) - The Progressive Insurance Automotive X PRIZE -- a competition designed to inspire a new generation of viable, super fuel-efficient vehicles -- today announced that Tata Motors Limited of the United Kingdom has signed an official Letter of Intent to compete. Tata Motors is now among more than 70 teams from 12 countries and 22 U.S. states who have signed a letter of intent to compete for a share of a $10 million prize purse.

The independent and technology-neutral competition is open to teams from around the world that can design and build production-capable, 100 MPGe (miles per gallon energy equivalent) vehicles that people will want to buy and that meet market needs for price, size, capability, safety and performance in one of two classes: Mainstream and Alternative. Mainstream vehicles will be required to carry four or more passengers, have four or more wheels, and allow for a 200-mile range. Alternative Class vehicles will be required to carry two or more passengers, have no constraints on the number of wheels, and allow for a 100-mile range.

Jonathan Etherington, Principal Engineer of Tata Motors European Technical Centre (TMETC), will lead the Tata Motors team. Under Etherington's direction, the team intends to enter a pure e-drive micro car into the Alternative Class and Dominant Electric Hybrid vehicle into the Mainstream Class.

Other recent entrants to the Letter of Intent program include Motive Industries of Canada, Western Washington University, Hybrid Electric Vehicle Technologies, Inc. of Chicago, IL and TTW Turin Italy of Turin, Italy. Rock and Roll Hall of Famer Neil Young also intends to enter his 1960 Lincoln Continental conversion into the competition, along with his partner Jonathan Goodwin.

The Progressive Automotive X PRIZE is open to all -- automakers large and small as well as innovators -- who believe the goal of a 100 MPGe vehicle is not only possible but essential if we are to break our addiction to oil.

"We are so pleased that such a diverse group of competitors intends to compete for the Progressive Automotive X PRIZE," noted Don Foley, Executive Director of the Progressive Automotive X PRIZE. "With the first stage race only 17 months away and the price of crude oil now hovering around $120 a barrel, consumer interest in the need for such a competition and a long term solution to fuel prices is rapidly growing."

Beginning in September 2009, the Progressive Automotive X PRIZE will kick off a cross-country stage race in New York City, followed by nine other major markets throughout the U.S., in which competing vehicles will be tested and showcased in real world conditions. Organizers are now seeking cities to host the remaining stages of the competition.

Winners will be the vehicles that exceed 100 MPG equivalent, fall under strict emissions caps and finish in the fastest time. The competition is scheduled to conclude in 2010.

ABOUT THE PROGRESSIVE AUTOMOTIVE X PRIZE

The goal of the Progressive Automotive X PRIZE is to inspire a new generation of viable, super fuel-efficient vehicles that offer more consumer choices. Ten million dollars in prizes will be awarded to the teams that win a stage race for clean, production-capable vehicles that exceed 100 MPGe.

The Progressive Automotive X PRIZE will place a major focus on efficiency, safety, affordability, and the environment. It is about developing real, production-capable cars that consumers will want to buy, not science projects or concept cars. This progress is needed because today's oil consumption is unsustainable and because automotive emissions significantly contribute to global warming and climate change.

ABOUT THE X PRIZE FOUNDATION

The X PRIZE Foundation is an educational nonprofit prize institute whose mission is to create radical breakthroughs for the benefit of humanity. In 2004, the Foundation captured world headlines when Burt Rutan, backed by Microsoft co-founder Paul Allen, built and flew the world's first private vehicle to space to win the $10 million Ansari X PRIZE. The Foundation has since launched the $10 million Archon X PRIZE for Genomics, the $30 million Google Lunar X PRIZE, and the $10 million Progressive Automotive X PRIZE. The Foundation is creating prizes in five areas: Exploration (Space and Underwater), Life Sciences, Energy & Environment, Education and Global Development. The Foundation is widely recognized as the leading model for fostering innovation through competition. For more information, please visit www.xprize.org or email prcontact@xprize.org.

For more information about the Progressive Automotive X PRIZE, please visit www.progressiveautoxprize.org or email progressiveautopress@xprize.org.

ABOUT PROGRESSIVE

Progressive, founded in 1937, is a leading insurer of cars, motorcycles, recreation vehicles, boats, personal watercraft and commercial vehicles. The company offers competitive rates and products that meet drivers' needs throughout their lifetimes as well as 24/7 online and in-person customer and claims service.

Progressive's products and services are available locally through more than 30,000 independent insurance agencies in the U.S., online at progressive.com and by phone at 1-800-PROGRESSIVE (1-800-776-4737).