Ratan Tata Defends $2,500 Indian Car
Tata Motors wants to bring this century’s version of the Model T to Indian roads buy building a safe and reliable car priced at around $2,500. Critics of the project, which has the potential to change pricing benchmarks for all automakers doing business in India, say that such a vehicle would add substantially to dense traffic, and carbon emissions.
(Click through the jump to read on about Tata's $2,500 car.)
Company chairman, Ratan Tata (pictured), claims that despite controversy and rising steel prices, his company is on pace to deliver the 100,000 rupee car to market some time next year. In response to criticism from environmental groups who claim that the budget car would put millions of new Indians on the road, Tata said that his car would adhere to strict quality standards.
Tata also downplayed the environmental impact of the vehicle saying, "We will have less pollution per vehicle than any other vehicle in the country today." Then further claiming that the planned vehicle would pollute on the same scale as two-wheeled vehicles.
Despite Tata’s claims, it is unlikely that the new car would be able to pass the muster for pollution standards set for U.S. cars by the EPA.
Initial plans for the new vehicle have called for the production of 250,000 to 500,000 units per year. Tata also stated that flexibility in the use of fuels for the project, including possible ethanol use, was on the table.
Will a $2,500 car spell disaster for the Indian environment? Shed some light in ‘comments’.
Comments
CHARLES G.
It would be interesting to see his/their cost analysis for this car. Yeah, labor is cheap, but is it possible to build a roadable vehicle @ $1/lb? You'd think the raw materials would cost more than that.
Would certainly give the Chinese et al a run for their money.
Scratch
"the budget car would put millions of new Indians on the road"
Somehow I think that's exactly what he's got in mind. Brilliant argument, greenies. Surely he'll rethink his plans now. /sarcasm/
Ducati Minor
The Tata doesn't have to be a global seller. India has a huge buyer pool just waiting to be tapped. The Morris Minor and Fiat 500 did not cause waves in Asia or North America. They became big hits in their respective countries. Imagine the equivalent in India--eight million? Fifteen?
fstst56
That's less than a riding lawnmower in the States!
LandCrusher
I think its interesting that the greens are up in arms about the car. Has anyone actually tried to figure out what the actual results for the environment might be, or are they doing math on a napkin?
You have soooo many variables. I am not convinced it is bad.
Lastly, peoples cars like this have a great track record of success. It will likely sell if they can come close to that price.
masterman
I don't like the unsourced, commentative tone of the article. Who says the car won't pass muster? How do we know that already? Sounds like sour green grapes to me...
Jason Salcido
I think it's just common sense that putting millions of cars on the roads of india has to be bad for the environment there. Their have already been many news articles about how poor that countries highway infrastructure is and how lax their pollution standards are. Also if GM and toyota are having problems creating higher priced vehicles that can pass EPA emmission standards with all the technology in their engines, what chance does Tata have? I have a feeling the company is going to get very rich while creating a mess for India that the country is clearly not ready for.
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Alexander López
Here in Venezuela, one of the first decreets of President Chávez was to make automakers build 'Family cars'. They responded by selling very basic versions of their entry-level vehicles (Opel Corsa, Renault Twingo, etc.)
The result has been an incredible boost of car sales.
Five years later, urban congestions have reached a point where there are no 'peak hours' because gridlocks can last up to 2 hours each. In Caracas, drivers ususlly have to spend 4 hours each day sitting in their cars within the parking lot-like highways.
So, if any country wants to do this kind of project, please invest in new roads.
Not to mention we have Smog everyday.
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