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What’s good and not-so-good about Tata’s 1 lakh car

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Reuters

Posted online: Tuesday , January 08, 2008 at 12:00:00


January 8: Tata Motors Ltd unveils the world's cheapest car in New Delhi on Thursday. Dubbed as the ‘People's Car’, it will sell for about $2,500 and should be in dealers' showrooms by September.

Following are some of the pros and cons that supporters say could revolutionise the transport scene in India.

Safer Than A Scooter

-- Indian consumers bought about 7 million two-wheelers and 1 million cars in 2006/07. Tipping the ratio from scooters to cars, and so improving public safety on India's crowded and sometimes chaotic roads, was one rationale for creating the People's Car, according to Ratan Tata, the company's 70-year old chairman:

-- "That's what drove me -- a man on a two-wheeler with a child standing in front, his wife sitting behind, add to that the wet roads - a family in potential danger," Tata wrote on the company Web site.

The Price

-- Retailing for 1,00,000 Rupees (or "one lakh"), Tata's rear-engine, 4-seater is expected to put automotive ownership within the grasp of the millions of young families who make up the country's aspirational middle class.

-- At that price, it will cost less than half the cheapest car on the market now, the mini Maruti 800, and more than double an entry-level 100cc motorbike.

-- Small cars, for years the best sellers in India, are being touted as a new global trend, with Renault's Logan entering new markets and India's Bajaj Auto, Renault and Nissan looking into the feasibility of a $3,000 car.

Jobs

-- The Tata group chief has said the car will be manufactured in three to four locations, including West Bengal and Uttarakhand states. A plant in Singur, in eastern West Bengal state, is expected to employ 10,000 people.

…And The Not-So-Good Part

Protests

-- Farmers and activists staged violent protests at Tata Motor's Singur plant last February, saying local people were forced off prime farmland to make room for the plant. The government says it has compensated most of the affected farmers.

Environment

-- Environmentalists worry that a car so cheap could lead millions down what they see as the wrong road, with soaring car ownership damaging the environment and locking India into greater dependence on oil. India imports 70 percent of its crude oil.

-- Indian climate change expert R K Pachauri, chairman of the Intergovernmental Panel on Climate Change, says the One Lakh Car is giving him "nightmares".

-- Anumita Roychoudhury, of the Centre for Science and Environment in New Delhi, told The Observer she is worried that "we'll have a timebomb ticking away. When you lower the price that drastically, how will you be able to meet safety and emissions standards?"

-- She also said, "It's just not sustainable, whether from an environmental point of view or in terms of congestion."

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  • Comments - 12
Tata small car by R. Kittappa on 10 Jan 2008

The fuel consumption is not stated. It is true that the environment will take a beating. But the plus poit is that many employees, particularly those working in shifts are exposed to dangers and the Tata car offers some relief. However, the vehicle may not replace the two wheeler to a very significant extent. To address the fuel consumption problem, the same size of the car (as the Tata Nano) should be made a hybrid which would decrease the countr's fuel bill.

all nay sayers - shut the F up. by vishal on 09 Jan 2008

The logic(s) being pushed forward by the nay-sayers is ridiculous in the extreme. There is nothing bad about this car. Everything is good good good. Liberal left wingers like Pachauri and Anumadhiblahblah always want to keep the poors, poor and just cannot tolerate the idea of the common emerging out of his misery. Just shutup everybody.

People's car by Abbai on 09 Jan 2008

Is it safer than two wheeler or not. Do you think it produces more pollutants than two wheeler.Do you stop developing new cars Just because we don't have good roads.Nobody is bothered about middle class family of four traveling on two wheeler.These guys are hypocrites they don't like others to travel in comfort where as they travel alone in big cars/SUVs. I think Tata have done a good thing.If you can't congratulate them pleasekeep quite.

Rotten journalism by Tukku on 09 Jan 2008

-- Indian climate change expert R K Pachauri, chairman of the Intergovernmental Panel on Climate Change, says the One Lakh Car is giving him "nightmares". What kind of a journalism is this? Giving some idiota nightmare is an independent point from the one above which already said that there is an environment effect?-- Anumita Roychoudhury, of the Centre for Science and Environment in New Delhi, told The Observer she is worried that "we'll have a timebomb ticking away. When you lower the price that drastically, how will you be able to meet safety and emissions standards?" These things will automatically fall in place. invention of bicycle must have worried her too because now we will have to build "paths" for high seed bicycles [compared to earlier "walking indians".

regarding 1 lakh car by abdulah on 08 Jan 2008

actually the oil demand and the price also will go up in the future as the world leader not caring about the middle and the lower income family thanks to Ratan tata i think he is doing for them But he would made the car with gas or electric or some easy avaliable fuel which is affordable for the above said family thanks Abdoolah

Small Car by Sam Chahal on 08 Jan 2008

In USA about 17 million vehicles are sold every year.If India started selling 7 million small cars and replaces motocycles, the net out come of vehicles sold would not effect environment that much.Because smog produced by motorcyles and small car enigines, is not as much damaging as the smog produced by trucks and buses and large cars. India should be proud that finally lower middle class would be able to feel little bit safer and comfortable during summer and winter months when going to work. We should not be alarmed about correct technicle solution. In the future vehicles are going to run using clean fuels such as hydrogen.Please don't lose sleep over good invention.

A cheap idea---- by romesh.sharma on 08 Jan 2008

There is absolutely nothing good.Even the idea itself,which sounds favourable to the lower middle class,will harm their financial conditions more and bring them down to still lower standard of living.they have to cut their budgets for urgently needed requirements of daily life like medicine/healthcare and child care etc.To buy a motorized toy(this is what it will be)is/will be easy but to maintain it will needs extra funds.If one is to purchase such toy just for prestige sake (of low taste)the person couldn't be foolish enough.Moreover a car worth one Lac Rs will prove more dangerous to drive on Indian roads because of failing safety standars/equipments.Mr Tata saw a child standing in front of driver of a scooter and how about the whole family sitting tight in cage from which there won't be any possibility of pulling out the wounded(only if they survive).Mr Tata sees not that child but billions that he and his concern can earn from those who has little reserves and are jealous of car owners.If Mr. Tata has to see,he should see the whole families and promise them with projects giving them apartments/family quarters with sanitation for this or little more money.Moreover the cars which are already being produced are not of international standards with safety view points and enviromental norms.Produce the cars which have basics like catalytic-converters,brakes with anti-block system and air-bags etc.Indian auto industry needs radical changes in its philosophy of production of friendly motor vehicles.

1 Lac Car Good for Common Mans safety by Ramdas on 08 Jan 2008

Yes, I agree with the above artical that it will improve Indian familty safty on the road. An new generation will get direct Car to sit with parents. I use to drive a Bajaj Scotter with 3 to 4 member which was not good for safty and canot keep any of the member alone at home also.Thanks to TATA group taking care of india familiies and wish to have a car.

A new era by Manoj Harikishan on 08 Jan 2008

This car will herald in a new era. There is nothing wrong if Indians aspire to own a four wheeler which, if nothing else, can atleast offer them safety on the road and shelter from the severe sun, rain or chill. The breast beating environmentalists should first challenge the gas guzzlers of the western world as India's per capita carbon footprint is still the lowest in the world

where are the roads to drive this car ?? by Sameer on 08 Jan 2008

But where are the roads in India to drive this new car ? As it is there is absolutely no room for new vehicles on roads (for a city like Mumbai). It would be interesting to see what happens next once people start buying these new cheap cars and flooding the already congested streets. Industry will introduce new cheap cars in the market while goverment will have to come out with ways to stop people from buying these new vehicles (introduce new road tax / increase fuel price/ etc.). Otherwise there is absolutely no hope.

Appeal by Vishal Sharma on 08 Jan 2008

Call it People's car,Salute Mr TataJai Hind

tata by vizith on 10 Jan 2008

tata means ethics,values .. unlike other business tycoons .. tata family will always for the people.really vishal ..we have to salute ratan tata for his great contribution to ur society.

One lakh car by Ranjit Shetty on 08 Jan 2008

I am looking fwd to this, we should admire what TATAs are doing. The government and the so called environmentalists may come up with something like this too, that would actually concern people's safety.

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