The Ajanta group, manufacturer of famous clocks and electronic equipment is planning to launch a cheaper car than the Rs 1 lakh car Nano. The company will set up a plant at Samkhiyali in Kutch district of Gujarat to manufacture electric cars that will be price below Rs 1 lakh.

Ajanta group director Jaysukh Patel said in an interview to The Times of  India that it would not be difficult for the company to manufacture electric cars as it was already involved in manufacture of electric scooters and bikes under ‘Oreva' brand.

He said that the company is in a position to produce 70 percent of the parts in-house which will give them an edge over the vehicle pricing.

The Ajanta R&D team is exploring the viability of the small car project under the conditions in India, he said. According to sources the company has imported eight electric cars of different brands, and they were being tested and studied by the technical staff for necessary modification under Indian conditions.

The Ajanta group is serious in its attempt to keep the basic price of the proposed car as low as Rs 85,000. At present, in the electric car segment only Reva car is available in India.