There's no doubt Ratan Tata had only good intentions when he said he conceived the Rs. 1 lakh car as he cared for the safety of those using two-wheelers. But Bajaj Auto Chairman Rahul Bajaj thinks its just a ploy to market the vehicle.

"He has to sell his car... so he has to speak like that," Bajaj shot back when reporters asked him about Tata Group Chairman Ratan Tata's remark that one of the major reasons for him to decide on the 'people's car' was the concern for safety of those travelling by two-wheelers.

Two-wheelers are sold all over the world, it has been proven that they are safe, he said, adding his company's products were safe.  

The price differentials between the small car and the high end motorcycles likes of Bajaj Pulsar 200 cc, the to-be-launched Pulsar 220 cc and Hero Honda Karizma are expected to be minimal.

http://en.wikipedia.org/wiki/Motorcycle_Safety

Motorcycles have a far higher accident rate per unit of distance travelled when compared with automobiles .

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me - http://www.business-standard.com/common/storypage_c.php?leftnm=10&autono=279241

nice and different take.
why must GoI subsidise 'small cars' when the act will only serve to make more of these on the road. and with a large oil import expenditure .. ..

perhaps GoI must focus on 'efficient' cars and not small cars. and perhaps have lower annual fees (registration, insurance) etc for 'greener cars' etc ?

and perhaps, like AS mentioned, GoI must focus on viable public transport, thereby obviating the need for pvt transport entirely!

etc etc.