Tata’s Rupees One Lakh Car

Tata finally launches it! The “People’s Car”. Christened ‘Nano’, it is being touted as the biggest thing to hit the auto industry since Henry Ford started the Model T in early twentieth century. It has forced the auto suppliers in the Automotive Mecca (Detroit) to worry about what the future has in hold for them. The people in US and Europe are rubbing their eyes and saying “What? A $2,500 car?”. Whereas the critics are saying it will be a traffic and environmental disaster for India.   

But whatever you may say Tata has pulled off something that was almost inconceivable. In a place where the old Maruti 800 was all about what a spartan car could be, at a price of at around rupees two lakhs that appears too costly! But issues have been raised on its quality and compliance with emissions, though Ratan Tata has claimed that it complies with Bharat III and Euro IV standards.

I agree with the critics that at least it is going to be a traffic disaster. Our cities are already seething with jams and crowded places. But then Ratan Tata is a businessman. And his focus is on bringing products which people need at the cheapest possible price. The infrastructure problems have to be solved by our policy makers and politicians. And it may be too much to ask from them. We have seen Bangalore and Pune become pathetic without much being done to keep pace with the exploding population of these cities. I am sure if this car is a success it will be a traffic disaster. But then if we think outside our cities, in the rural areas, where 70% of India lives it could be a life changing thing.

It is not only the Indians who have been looking at it. One of the strategy executives at a top global auto supplier while talking to some of us mentioned that they were really worried about the car. He said that their body interiors come to a cost of around $1500 and if Tata brings a whole car at $2500 then many aspects of car manufacturing could be impacted. He said that they had no clue how the body part will be made. It has to be some new material, whether it will be wood, iron, tough recycled paper, he had no idea! But it was clear that the boardrooms of all the automakers have this car right in their thoughts.

Tata Motors had definitely arrived at the global scene in a very unusual way. But when one can do it then why not others. Bajaj has already announced its own $3,000 car to be appearing in a few years. They have already given a peek at the concept car just before the Tata launch.

About Mirza Faisal

Mirza Faisal is an IT professional and a management student.
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12 Responses to Tata’s Rupees One Lakh Car

  1. Pingback: Global Voices Online » India: Introducing the Tata Nano

  2. Amit says:

    For this car to be viable in Europe/US, it’ll probably have to be sold as a secondary city car – I doubt that with a top speed of 40something mph would work on the highways. Unless a different version that can attain a higher speed is available for overseas markets.

  3. ashish says:

    a true disaster for everything.
    this will increase only problems for the citizens.problem of traffic, pollution noise and air.
    another way of increaseing the global warming.

  4. Navaid Alam Faruqui says:

    I think its a great concept, something that Indians really need. I understand that it will be a traffic disaster but that cannot and should not keep this car from becoming a reality. Owning cars should not be the luxury of the elite. If another section (a large one) is able to afford, cheers to Ratan. As you said, there’s more to India then just the cities. As for the cities, let’s see if it brings out the best in our city planners (not high hopes though).

    By the way, neither of the photos is of nano. Check this out

  5. Taha says:

    I hope this car is safe for the passengers travelling in it- at 1 lakh, I am not sure what (if any) safety features come equipped with this car. It is going to increase traffic, pollution and accidents.

  6. As much as environmentalists and safety experts predict doom for the venture, it’s a dream car for the common man out there. And it makes a lot of sense for a family of four risking their lives on a two-wheeler during the rainy season.

    Ratan Tata is both an industrialist and a visionary. His eyes are on Africa and the rest of the developing world. If he scores in India, the export market is a goldmine.

  7. Pingback: Global Voices amin´ny teny malagasy » India: Ny nampisehoana ny Tata nano

  8. Opinionated says:

    Much as I respect the house of Tatas, here’s another very valid point of view:

    http://wearethebest.wordpress.com/2008/01/12/the-launch-that-showcased-a-thousand-slips/

    As for the environment, we’ll just HAVE to find another planet!!!

  9. Girish says:

    Is the car as safe as a typical car sold in the US or Europe, with airbags, side curtains etc? No – most defintely not. Is it about as safe as a Maruti 800. Yes and perhaps more so than an 800 due to better design. Is it safer than a motorcycle or scooter for carrying a family of 4? Most definitely yes. Is it safer than an autorickshaw? Again, most definitely yes.

    Critics need to compare this car with the alternatives available in India for the target customer of this car.

    Regarding environmental effects of the car – its emission levels are lower than that for a typical scooter or motorcycle and comparable to that for a Kinetic moped. So why the big fuss?

    As to the argument that it will crowd the roads – why is that argument not applicable to cars across the board? Why was it ok to have explosive growth in cars as long as they were reaching the upper middle-class and above? For sure, infrastructure is inadequate. For sure, we need to encourage more use of public transport. But not by shutting off the option of car ownership to those who can only afford 1.2 Lakhs. But by providing the infrastructure that the Government is supposed to provide anyway. And by building policies that encourage people to use public transport.

    In sum, this is a great move forward. Ratan Tata is a businessman and a darn good one at that. It is his job to produce great products, that people need. The Nano seems like it is in this class. It is the Government’s job to provide the infrastructure that is necessary to improve people’s lives.

  10. Malik says:

    If Maruti 800 can run on Indian roads, then Nano deserves the right to tango with it.

    Europeans and Americans or even any country for that matter will not allow Nano on their roads till it has passed their road safety tests. So one doesn’t have to criticize repeatedly about its safety issues.

    As long as it can function decently like a car without major problems, one need not bother with more criticism.

    Traffic jams are getting very common and Nano is not the cause of it. Its already present in all major cities. Well, the government has to come up with good infrastructure plans. Thats the government’s headache and one should criticize the government, not Nano.

    I am happy that Tata proved to the world especially the automotive world that the 1 lakh car is feasible. We should be proud its of Indian origin.

  11. Pingback: Global Voices 日本語 » インド:タタ社「ナノ」誕生

  12. sameen says:

    Congratulations to Tata Motors to have delivered on the promise. The ingenuity of Indians has no limit. It is an achievement all Indians should be proud of. As far as safety is concerned, I trust that it will be as safe as the Maruti 800. In any case any car is safer than than a scooter with 2 adults and three children- a fairly common sight in India. As far as traffic congestion that this vehicle will cause, well that is purely academic in nature. Roads have to be improved even without this car. Moreover this car will remove a large no. of Maruti 800s and 2-wheelers from the road.