Tata Engineering & Locomotive Company Ltd has proposed to change its name to Tata Motors Ltd, even as the company is mulling to work on a low-cost small car over the next four to five years.

"The company internally has decided on Tata Motors Ltd as the new name, as it defines the business we are in," Tata Engineering chairman Ratan Tata said at the company's annual general meeting in Mumbai on Monday.

Referring to the low-cost small car project, he said the company has the potential to make an attempt and added, "We are not saying that we would succeed, but we can give it a try."

He said it will take at least four-five years and the company needs to adopt an "unconventional approach".

It would not involve stripping down of a car, but starting to build a car from a scratch, he said.