The Rs 1 lakh car being built by Tata Motors [Get Quote] may be exported to the countries in Asia and Africa.

The small car will be a never-before-undertaken project, which will hopefully create a new paradigm in the aspirational fulfillment of the lower-income segments in India, Asia and Africa, according to Chairman Ratan Tata.

The new small car would be launched in the first half of 2008.

Tata expressed confidence that the company's bonafides and sense of social responsibility will overcome the misplaced apprehensions and concerns, which arose in the early days of the project.

The project, being set up at Singur in West Bengal, has been mired in political controversy. However, Tata is optimistic that the company's operations would benefit Singur in a similar manner to Pune, Jamshedpur, Lucknow and Dharwad.

The company's investments in Singur would attract a large number of automotive component suppliers and manufacturers.

With its margins being hit by the rising prices of raw materials such as steel, non-ferrous metals, rubber and engineering plastics, the company faces the challenge of developing quality vehicles and cars. 

The company would focus on innovation and market leadership in the next 2 years, as a slew of new cars are scheduled to be launched during the period, according to Tata.