
A mass-produced, affordable auto revolution is coming to India. Or, as BoingBoing suggests, “make way for the hundred dollar laptop of automobiles:”
Tata Group Chief Ratan Tata told shareholders that the launch of the car would create a new paradigm in low-cost personal transport, carve out a new market segment and reach a broader base of the pyramid.
"The styling and designing of the car have been completed and prototypes are being tested in the plant. It will be a rear engine, 4-5 seat, four-door car with about a 30 horsepower engine," Tata said in the company's annual report for 2005-06.
The car will be launched in early 2008 and we believe it will be extremely attractive to the Indian consumer, particularly younger families, at a price level of about Rs one lakh, Tata said.
I absolutely love it when a big shot CEO uses terminology like “Base of the Pyramid,” because it demonstrates how some firms at least know the concept. Whether they are doing it in a sustainable, profitable way...anyway, while I love this concept from a BOP and economic development perspective, what worries me is twofold. First, what about the environmental impact of hundreds of thousands of additional cars on India’s already-congested roads? Answer to myself: it will be up to Tata to make these vehicles as fuel-efficient as possible. Second, will this push Indian development toward the US model of roads and highways and provide a disincentive to well-planned cities and public transport?
Original links via IndianRaj and SouthAsiaBiz. Original article in the Hindustan Times.


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No one should mistake this as a move in the direction of sustainable transport. To be sure, it would be better if these inexpensive vehicles were low-energy using, slow, and clean city cars. But the manufacturer also should support public policies and regulations in cities to ensure that their products don't overwhelm or worsen the quality of life for city dwellers as a whole.