India's Model T: Tata's $2000 Car Out by 2008

Submitted by Rob Katz on June 27, 2006 - 06:13.
Published in: |

Update: Lee Schipper, Director of Research for WRI's Center for Sustainable Transport, comments below on the implications of a low-cost car for India.

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.


. . . . .
Submitted by Lee Schipper on June 27, 2006 - 07:41.
While individual mobility is something to be cherished, providing an inexpensive four wheeled vehicle in a country that has not even managed to provide infrastructure for the tens of millions of polluting two-wheelers seems a bit odd. Worse, most Indian cities do not even have proper sidewalks, cycle paths, or even clean and well lit bus stops, which gives the majority of Indians better transport.

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.
Submitted by Vickram on July 1, 2006 - 05:52.
The last thing India needs now is more cars. Anyone who has visited Delhi, for instance, in the past few years can attest to the overwhelming presence of automobiles in that city, the disgusting quality of the air (which is actually better than it used to be, if you can believe it), the uncontrolled urban sprawl (greater Delhi is about 50 million people, I understand), and non-stop, 24/7, wall-to-wall traffic. Making a car as cheap as this is an amazing engineering feat, but this will only expand the problems of Delhi to other parts of the country, and ultimately, add more pressure to the already strained land.
Submitted by Ethan Arpi on July 3, 2006 - 12:11.
Given India's size--and other concerns mentioned above--I would like to hear more about large scale public transportation projects. In the short term, personal automobiles might be a convenience for India's emerging middle class, but I imagine that in the long run these cars will be more of a burden, creating a transit nightmare .
Submitted by Sanjay on July 3, 2006 - 18:46.
Hi guys, Maybe Tata needs to partner up with some other disruptive technology innovators: http://www.businessweek.com/autos/content/jun2006/bw20060628_655501.htm Battery-powered or ultracapacitor-powered vehicles could be charged off the grid. It's just a matter of putting together price and performance (energy storage capacity, power output and rechargeability). If Tata can build the rest of the car so cheaply, maybe some expensive batteries or capacitors won't kill the price too badly.
Submitted by Rob Katz on July 5, 2006 - 07:21.
Sanjay, I think partnerships will be crucial for Tata to succeed with the $2000 car, whether from a design/engineering point-of-view or from a product development/marketing point of view. You say that electric cars in India could be charged off the grid, but, to my knowledge, the state of India's electric grid leaves something to be desired, no?

As for electric cars and innovations, Worldchanging's Joel Makower reviews other EV projects in a recent post. Maybe worth a look.
Submitted by Prashanth on July 5, 2006 - 19:06.
Let me take this argument in bits. Delhi does not good roads (taken ) but what will make the delhi roads better, No cars on this earth or more cars on this earth. If 1 lakh car replaces most of the polluting, big cars...Delhi has only to benefit.
Submitted by Jonesy on November 9, 2006 - 03:01.
One thing to remember is that with such a low cost car very little can be spent on development. I am sure that lacks much in the way of emmsions equipment and with such a low price point will likely only increase pollution problems. Much like the Trabant of Eastern Europe, it's only purpose is to get more people into cars, the environment be damned. Currently I see no way a practical electric car could be produced for anywhere near the $2000 price point. Granted, it's dated but GM's EV1 reportedly cost about $1 million to produce, just as comparison.
Submitted by Badger on November 10, 2006 - 08:23.
Good reading. Hope things come together.
Submitted by Delaware Car Dealer Reviews on November 30, 2006 - 09:55.
Is it such a bad thing for a car manufacturer to build such an inexpensive car? I don't think so. Let's think about this - how any people are out of jobs because they can not afford transportation? Imagine being able to have more than half the Americans out there transporting themselves to and from work. No more excuses "the bus was running late or the bus never came." Good for Tata.Delaware Car Dealer Reviews
Submitted by Ronita De on January 5, 2007 - 14:25.
Very thoughtful of the Tata's to launch a low budget car that would provide a convenient way for the new generation for whom it almost becomes impossible to travel due to conveyence.
Am sure that with the launch of low budget cars, people would prefer this to the two wheelers if they can afford this one. Once again three cheers to the Tata's for their visionary ideas!
Submitted by vishal kathad on January 18, 2007 - 00:19.
it is nice to hear about $2000 car.i think tata is on right way and it has also developed technology of car making.we should not think about pollution due to it's little 30hp engine.it is compact so there is little problem of traffic.and the main thing that everybody can buy a car and go anywhere without any sake of time.
Submitted by sanjay athalye on February 17, 2007 - 13:45.
As this car we can purchase in #2000. but are India's infrastructure is capable for handling the same. As we know that the cost of this car is very low 7 may affordable to 30 to 40% motor cycle users but in a small cities like karad, satara, sangali or other than big cities where the roads are very small . if every body purchase this car how much traffic problem exists in these small cities where car parking on road is big issue rather than using car on day to day basis think on this ----- this is an improvement program for Indian government for improving infrastructure like roads etc
Submitted by Rajaram on February 26, 2007 - 23:39.
yes, it is unfortunate that businesses can only think of profits for that is the motivation of this absurd idea of a small cheap car when our roads and infrastructure is bursting at the seams. as one comment rightly pointed out, we have no footpaths to talk about let alone cycling paths...the only silver lining if one can call it that is tata's collaboration with MDI of france who are working on the air car. that could provide at least some respite from air pollution (and GHG) but everything else is on the wrong street with this idea. particularly cultural pollution
Submitted by Maneesh on April 19, 2007 - 14:20.
Those hating the fact that a cheap car will make indian city traffic worse should give up their cars to make it better in the first place. All Indians have right to ride cars, if their neighbors do. Way to go TATA!
Submitted by Jaywalking on April 23, 2007 - 14:01.
Its true, India's public infrastructure including transportation has always been inadequate. But today almost every large city in India has alteast a few major Public transportation projects underway, including underground/elevated rail links and high speed roads. Though it may well be a case of too little too late but nevertheless ...a begining.
Submitted by Jaywalking on April 23, 2007 - 14:15.
A smaller, lighter, more fuel efficient car should be the preffered car for the 'enviroment consious'. So junk that big car and get a small car. Tata's small car not only seems to promise a smaller cost to your purse logically it should also be lighter on the enviroment. Let there more small cars!
Submitted by Anonymous on May 5, 2007 - 12:03.
If the idea is to provide a cheap car for the countryside,not to engulf anymore the big towns of India,I can agree and be enthusiastic with the technical performance of producing a cheap car. But I am nearly sure that the reverse will occur and the traffic in the big towns of India will just worsen. The countryside in India really needs a cheap but reliable 4-5 seats,4 doors and 30 HP are enough to move it around.That recipe is good for the countryside . Something equivalent to the former fench 2CV CITROEN which was a huge comercial success but made the most of its success in french towns traffic while it was initially designed for the countryside and the farmers. To alleviate the pollution concern into the big towns of INDIA,dear Ratan TATA should indulge in designing an electricaly powered car,something of a 3 seaters and I am immediatelly thinking of the rickshaws which are still the best tool in congested towns traffic. Think for one minute why the rickshaws have lasted so long? Further than that, what can we reproach them just now: mainly the pollution they produce with their 2 stroke engines. That's where indian engineers should work. Reduce the pollution and the noise of the rickshaws but for the rest they remain the most practical way to move into the biggest towns of INDIA.
Submitted by Anonymous on May 12, 2007 - 13:47.
Jonesy worries a $2000 car will be like the polluting junk Eastern Euro cars like Trabant, Lada etc. WRONG. Tata and other Indian cars meet Euro 3 or better emission norms, and unlike Chinese cars also meet safety standards. It's not inconceivable that this Tata car could be electrified in future at low cost. NOTE: Indian car firm REVA is one of the world's largest producers of small EV cars, has sold many in London and Europe. ALSO: cheap electrcity: India is building what is expected to be world's cheapest and safest nuclear reactor, a 500 mw beast based on thorium. ALSO: India is world's 4th largest wind producer, SUZLON is one of the world's largest producers of wind turbines with projects in India, Europe, and America. And large subway projects ae being built in DElhi, Mumbai, Hyderabad etc. India will have cheap small cars running on electricity, cheap non polluting thorium reactors to make that electricity, wind power as backup, and huge subway systems in every city. INDIA will solve all her own environmenttal problems and point the way for the whole world.
Submitted by A.GOPAKUMAR on July 8, 2007 - 06:17.
My sincere request to all concerned at TATA is to ensure that you appoint a dealer with a FAIR amount of sicerity for your small car.My experience with the dealer in my town [TRIVANDRUM] make me feel not to buy even if the car is good'
Submitted by Anonymous on July 12, 2007 - 07:27.
It is great for the whole world that such an eco freindly car is produced in India. Maybee others will notice that using compressed air is much better than using cheap dirty Arab oil that is very expensive everywhere except for the Muslim countries. India could lead the world by showing that Arabs don't have to control our economies. As for complaints about too many cars in India. Do they expect Indians to use horses or donkeys in the 21st century as a sole mode of transportation? Get real! Cheap energy source like that which is not controlled by the Arabs would only stimulate the India's economy and would make sure that the people of India get the billions of petro dollars that right now are going to the Arabs. It's better to keep India's money in India.
Submitted by John Guerin on July 27, 2007 - 17:55.
Your problem could be cured fairly easily. In 1936 in canada there was a carberator invented by a man by the name of Alexander Pouge, it was tested by Ford motor company of canada in 1936 on a new 1936 ford with a v-8 engine, performance was fine and the car got either 25.8 or 26.8 miles per pint of gasoline, just a little over 200 miles per gallon. Liquid gasoline does not burn, his invention made the gas a vapor. Clean air and economy. Sincerly, JG
Submitted by ANUR RANDER on August 5, 2007 - 07:43.
I THINK U SHOULD COME OUT OF THE 1 LAKH CAR BECAUSE IN INDIA IN VILLAGE THRE ARE NO TRANSPORATION FACITILY THETR SOME GOING BY BYCYCLE SO U SHOULS INTRO NEW CARS IN VILLAGE FIRST
Submitted by sk on August 6, 2007 - 05:59.
Again the Big Enterrises trying new ways to make money. Yea blah blah blah, every1 has the right to own a car,,,the rich arent the only 1s who deserve to have the comfartability of owning cars. Is it just me or does anyone else understand that- rich wanting to ride high consumption super cars and the poor wanting to buy cheap cars instead of public transportation- all this ends up with us digging our own graves. I mean common, we just keep talking about individual entities. We as mankind forget the damage we are doing here. Whoever reads this please - Cool cars and all that superficial dont keep you happy forever. Please use the Public transportation if you can use it. If you think that it seriosly is not an option you have. For you the Tatas have done a gud job..
Submitted by Naresh Sheoran on August 7, 2007 - 07:43.
The Rs 1 lakh car is a good idea car for the middle and lower middle strata of society, as the cost of travelling in public transport is more for a family as compared to own conveyance. Also the family system is breaking up and nuclear families are increasing. This car will prove to be a boon for all
Submitted by San_vai on October 16, 2007 - 07:27.
Why can't they make small car with this price range, which is more efficient in terms of economy and environment friendly Like Two seater Hybrid electric & petrol vehicle, where petrol engine can be us when extra torque is required ( Slop ,speeding up, startup etc) so most of ppl who drive alone to office or for shopping etc can use it & save them self from bad environment i think it will work for all
Submitted by VMehta on November 11, 2007 - 10:19.
this car cannot replace bikes , thats for sure . on road price on this vehicle will be around 1.3 to 1.5 lakhs..Also safety will be a big concern here..Just wait and watch .
Submitted by Abhay Dang on November 20, 2007 - 21:25.
The MRT, ring road flyovers, sea link projects in various Indian cities will take years to complete. Tata's car will prove to be a nightmare for us till then. Only Delhi may be a bit better off. We are so fucked!
Submitted by Anonymous on December 2, 2007 - 11:23.
This is fantastic, and infrastructure, traffic congestion and pollution issues notwithstanding, will be a tremendous asset for lower income, progressing and rural Indian populaces. Having said that, the real gravy to be had here is from Tata exporting these cars to China, Africa, EU, etc., and perhaps, even the US and EU, to penetrate the markets and segments which are large, but untapped. Go figure!
Submitted by mark Joachim on December 6, 2007 - 06:19.
Wonderfull news just the thing for so many indians who are fed up with secondhand cars and wheeling dealing dealers and companies who offer true value cars at not so true value prices and conditions. So hope that this car delivers all that has been promised and a little more than just basics. It will be a dream for people to buy a decent new car at an affordable rate not outdated models and shapes at non affordable rates with no features that are relevant to any production cars anywhere worldwide. Kudos to Tata Motors and hope it wont be developed by trial and error method with the brunt borne by the public.
Submitted by Anonymous on January 10, 2008 - 05:02.
Lets get a few things straight 1. India has too few cars relative to the population not too many. 2. India is not that overcrowded vis a vis pop density Netherelands and Japan are far more overcrowded. 3.Things are getting built albeit not fast enough for people who want it yesterday. 4.Tata is helping industrialize this country despite being scrupolously clean and despite all the governmental incompetence all around it. Long live TATA!
Submitted by A V Koshy on January 11, 2008 - 05:33.
Nano is Euro III compliant and can easily pass Euro IV, when the norms are released. (From a press clipping, for your info)
Submitted by jim on January 13, 2008 - 10:19.
I live in the USA. When will the car be available in the US? A car like this is long overdue for City commuters and town driving. Not everyone over here can afford the honda cars nor the smart cars which offer lower gasoline use than most other cars available to our driving public.
Submitted by Marina on January 13, 2008 - 20:32.
How can I buy one of those Tata model cars currently in Dallas, TX?
Submitted by mxoli Sakwe on January 14, 2008 - 00:49.
We as South africans appreciate such a great growth of TATA company and we would like it to continue further as time goes on. Secondly we would like to know when are you going to import this $2000 model to South Africa, please reply to this email above. May the best of year and all the goodies for you. Thank you MXOLI SAKWE
Submitted by Rob Katz on January 14, 2008 - 08:48.
If you haven't already read it, I recommend C.K. Prahalad's editorial on the new 1-lakh car: A Nano Leap Into the Future.  Thanks for all the comments!
Submitted by Steve on January 29, 2008 - 19:44.
So much negativity!! I WANT ONE!! I'm from the U.S., California. PLEASE GET THESE CARS OUT HERE AS SOON AS POSSIBLE!!
Submitted by Naeem Khan on February 1, 2008 - 10:52.
it is nice to hear about $2000 car.i think tata is on right way and it has also developed technology of car making.we should not think about pollution due to it's little 30hp engine.it is compact so there is little problem of traffic.and the main thing that everybody can buy a car and go anywhere without any sake of time. Once again congratulation India on this achievment.Best wishes for this from me and also from all pakistanies.
Submitted by DEE LANGA on February 18, 2008 - 18:52.
i would also like to buy a tata where can it be found?
Submitted by Terry (the car finder) Bolton on February 20, 2008 - 13:21.
in India like anywhere; people want to live in some comfort;everyone have the same right to choose his lifestyle;so if my neighbor have a car ; why not me? i thank Mr.TATA if he try to make it more cheap;why somebody mention obstacles with poor people?
Submitted by Michael on March 2, 2008 - 18:23.
Business can only think of profits for that is the motivation of this absurds idea of a small with cheap car when our roads and infrastructure is burstings at the seam.
Submitted by Nick on March 5, 2008 - 23:24.
wonderful car I would like to buy one, where can I purchase one???
Submitted by Anonymous on March 7, 2008 - 23:29.
hi, i live on the west coast of the USA, when will this car be avaliable for purchase here? how fast do they go?
Submitted by Raghav on March 19, 2008 - 07:14.
Tata has done what he should have done as a businessman, we should do what we should as consumers and government needs to do what it hasnt really done so far as a caretaker of the citizens of this country. Tata has to prove that the cars even though low priced, are not cheap built and does not pollute (I would anytime prefer more small cars than too many 2 stroke two wheelers, who not only pollute but also are a menance on roads) We as consumers have to ensure that the product we purchase are not of poor quality, do not pollute and are safe. Government on the other hand need to ensure that pollution norms are followed, consumer concerns are addressed well and finally the consumers have access to a strong network of public transport system. Rest of the things would be taken care of its own
Submitted by Johnboy on April 11, 2008 - 06:14.
I like the way India produces a cheap and affordable car and so many people seem to be worried about emissions and environmental damage. So are we saying that a $40,000 SUV is more environmentally friendly with its 6 litre 10 MPG engine? John.
Submitted by Raghav on April 12, 2008 - 14:52.
The point here is, are bigger always better? Bigger engines, guzzling more fuel and driven around carrying just one person to office and back ! look at the kind of road and parking space that single person driving to his office and back is occupying. In a typical Indian city like New Delhi, Mumbai, Kolkata or even a Bangalore (and many more) a car of this size with decent comforts always makes more sense, because they help me in my daily commute, protect me from weather and pollution and are easy to maneuver & park. I would rather keep my large car for highway commute than for within city - Raghav
Submitted by harold erickson on April 14, 2008 - 22:19.
Tell me where i have to go to buy one? The biggest cars are the biggest polluters cause of using more fuel.Also until we find a way to go all nucular for our power, coal is the big problem.
Submitted by Anonymous on April 26, 2008 - 23:13.
I'm from the US and I would buy two, one for each of our family drivers. I pray they will become available
Submitted by JACK VICAJEE BERTOLI on June 1, 2008 - 10:22.
JUST WONDERING ......... AS AN ARCHITECT AND URBAN PLANNER WHAT THE IMPACT OF THE ''TATA NANO'' WILL BE ON INDIAN CITIES AND ROADS ? ? ?
Submitted by seth on June 8, 2008 - 22:48.
30 hp? i don't think that will last in america if it ever reaches here..
Submitted by Elsy Ziadeh on June 18, 2008 - 13:19.
if U can plz send to me information about this car an his price and if I want to buy one and take it to my country lebanon how it will be and how much it will cost I'm wainting you to reply

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