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India Greets World’s Cheapest Car
by
findingDulcinea Staff
Family-owned conglomerate Tata Group releases the $2,500 Nano. Automobile ownership comes within reach for millions of Indians, but there is concern that the cost to the environment outweighs the benefits.
30-Second Summary
With a suggested retail price of 100,000 rupees, or about $2,500, the Tata Nano debuted at the 9th Auto Expo in New Delhi.
The diminutive automobile seats five, but with a sloping nose that reduces head room for the driver and front passenger, “it’s a tight squeeze,” according to the Chicago Tribune.
Tata Chairman Ratan Tata reportedly found his head brushing against the ceiling of the car while he went for an honorary test drive at the auto fair.
While the car may inspire claustrophobia among American drivers, it is a step-up in comfort for those Indians who would otherwise be unable to afford anything more substantial than a motorized scooter.
Of course, the ready availability of affordable cars may be a mixed blessing. "If you're talking about urban environment, it will cause serious problems," a transport specialist with the Asian Development Bank told the Chicago Tribune.
The Hindustan Times conjectured that the influx of Nanos "is likely to bloat India's fuel bill" and push up gasoline prices.
Speaking at the unveiling ceremony, Tata said, “I observed families riding on two-wheelers … It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family.”
The diminutive automobile seats five, but with a sloping nose that reduces head room for the driver and front passenger, “it’s a tight squeeze,” according to the Chicago Tribune.
Tata Chairman Ratan Tata reportedly found his head brushing against the ceiling of the car while he went for an honorary test drive at the auto fair.
While the car may inspire claustrophobia among American drivers, it is a step-up in comfort for those Indians who would otherwise be unable to afford anything more substantial than a motorized scooter.
Of course, the ready availability of affordable cars may be a mixed blessing. "If you're talking about urban environment, it will cause serious problems," a transport specialist with the Asian Development Bank told the Chicago Tribune.
The Hindustan Times conjectured that the influx of Nanos "is likely to bloat India's fuel bill" and push up gasoline prices.
Speaking at the unveiling ceremony, Tata said, “I observed families riding on two-wheelers … It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family.”
Headline Link: Indian manufacturer makes world’s cheapest car
Indian business conglomerate Tata Group displayed its new Nano model car for the first time on Jan. 10. Its suggested retail base price is 100,000 rupees, or about $2,500, making the Nano the world's cheapest car. Classified as subcompact, the car can fit five people—but the Chicago Tribune describes it as “a tight squeeze.” Some laud the advent of the car, saying that it will give an added level of comfort to families who would otherwise be riding scooters. Critics of the car say that the low price may mean the car is lacking in safety and emissions standards.
Source: Chicago Tribune
Background: Unclogging India’s streets
The streets of Delhi are already gridlocked most of the day. But if India’s per-capita GDP continues to rise at the 8 percent annual rate seen over the past decade, the country’s roads could become even more congested. According to the BBC, 0.5% of Indians owned cars in 2000. In April 2007, the number of car-owners had risen to seven out of every 1,000 people. That number is expected to rise to 11 in 1,000 by 2010.
Source: The BBC
Reactions: ‘The People’s Car’
Tata Group chair Ratan Tata told observers at the car’s unveiling: “I observed families riding on two-wheelers—the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family … We are happy to present the People’s Car to India and we hope it brings the joy, pride and utility of owning a car to many families who need personal mobility.”
Source: Tata’s official Web site
Key Players: Ratan Tata
Fortune magazine lists 69-year-old Ratan Tata as one of its “25 Most Powerful People in Business.” The Tata Group is one of India’s most respected family businesses. Among the company’s holdings are India’s largest software development firm, consultancies, wireless services, a hotel chain and steel factories.
Source: CNN
Opinion & Analysis: The Nano’s potential costs
Pro
Preeti Burde, owner of a chain of driving schools in India’s state of Maharashtra, says that she will most likely have to replace her fleet of training cars with Nanos. She told the Indian paper The Economic Times, “We definitely see a growth in the business as more and more people would come in wanting to learn how to drive in a Nano, which means we too would have to buy more of the Nano model.” Ratan Tata is looking to have the new budget car foster business development elsewhere in India as well, particularly in engineering. The auto manufacturer plans to ship cars as kits to new businesses throughout the country, which could run small-scale production operations.
Source: The Economic Times
Bruce Nussbaum writes that the Nano reminds him of old European models such as the Mercedes Smart Car and the Italian Isetta. Nussbaum suggests that perhaps the design of the Nano reflects Tata’s past collaboration with Italy’s Institute of Development in Automotive Engineering. He notes that the car is supposed to get 50 miles to the gallon, asking readers, “If all the gas-guzzling SUVs on US roads were replaced by Tata Nanos getting 50 mph, would the US meet its obligations under the Kyoto Accords?”
Source: Business Week
Contra
The emergence of the Nano will not just give a boost to car prices, it will also put a further strain on gasoline supplies, writes the Hindustan Times. According to the article, India already imports some 70 percent of its crude oil. Indian petroleum distribution companies already lose 9 rupees (about $0.23) on every liter of gasoline. With the Nano coming on to the market, losses for all Indian suppliers could total 1.64 billion rupees, or roughly $41.87 million. Energy analyst Rohit Nagrajan says, “Either the government will have to provide them more bonds or increase the price of petrol.”
Source: Hindustan Times
Reference Material: The Nano on the web
The Nano’s Web site allows users to design and customize their own “dream car” and share comments on the car’s design.
Source: Tata Nano’s official Web site
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