Hi All,

As one can guess, there has been quite a deluge of coverage in the media around
here (in India) about the new Tata Nano.  There seems little doubt that millions
of these cute little bugs will be on the road in the next 2-3 years (unless a
tough-to-fix major snag surfaces, which seems somewhat unlikely).  The 
effective 
price might creep up a little in future by keeping the market supply of base
versions low and selling more of the "luxury" versions, etc.  Prices of other
"small" cars in the market will also have to drop a little to stay competitive. 
  All put together, it is widely believed that the appearance of the Tata Nano 
will surely cause a much larger number of the so-called middle and lower middle 
income group (who presently use two wheeler scooters and motorbikes and public 
transport) to switch to small cars (whether the Tata Nano or some other) than 
if 
the Tata Nano didn't happen.  I see a gleeful estimate in a financial newspaper 
today that 30% more Indian families than before are likely to own cars as a 
result of the Nano.  Wait a minute!  Get that right.  It's not 30% of the 
Indian 
population, 80% of the people live on $2 a day according to statistics, we 
aren't talking about them, you see.  It's 30% of the people who could afford a 
car even before the Nano.

There are many practical reasons why small affordable cars are attractive to a
lot of people around here.  The entire industry and the govt are putting all
their might behind boosting people's consumption in all spheres anyway 
(completely ignoring sustainability issues, as usual, because as we all know 
from the wonderful examples of the western world, more consumption means more 
"development").  Hard to ignore round-the-clock battering of car ads on tv.  
And 
there are practical reasons as well, in many parts of the country, it rains 
heavily or sporadically during 4-8 months of the year, and there's scorching 
sun 
during another 4, so the attraction of a covered carriage instead of a 
two-wheeler as personal conveyance for low-income people in a hurry to make the 
best out of a booming economy is obvious.

Environmentalists have not so far been very vocal on the Tata Nano and its 
impact except one or two isolated statements (such as this critical one by 
Pachauri http://www.rediff.com/money/2007/dec/17car.htm that received a lot of 
press).  One reason for the low key attention the Nano has received from Indian 
environmentalists could be the stealth mode that the Tatas managed to maintain 
during the development phase.  Very little information about the exact specs or 
emission ratings are available even now after the launch except for high level 
statements that it would be compliant with all emission and safety standards.

I suppose a pretty obvious general counterbalance measure to the boom in the 
Indian auto industry will be to significantly increase the taxes on all cars 
and 
use the revenue to incentivize the use of public transport, bicycles, and 
walking.  There is no place on the city roads to drive anyway, a 10 km drive 
through any large city routinely takes 60-90 minutes.  But who's bothered about 
that in this time of "growth" and "development"?  One simple example. There are 
hundreds of fly-overs being constructed in all the big cities around the 
country 
to ease the traffic congestion at major road junctions.  I'm yet to see one 
which has made sidewalk provisions for pedestrians to walk on them.  It seems 
the designers somehow "forgot" the pedestrians, even though there are more 
people on foot out there at any instant than are in cars, boom or no boom. 
"Forgot" the pedestrians?!

It's pretty amusing (if it wasn't so depressing) to see today's newspaper with 
the front page full of glorification of the Tata Nano and in the inside pages a 
news item about the traffic cops in a big city mulling the idea of enforcing 
alternate day use of cars (odd number plates on odd dates, even on even) and 
hiking the parking fees manifold to cope with the traffic congestion crisis. 
Time to go get your second car with a different oddity number plate!  And don't 
ever park.  Since you can employ a full-time driver for a pittance, ask him to 
keep driving in circles around the block while you finish your shopping at the 
new jazzy big retail store, that's cheaper than parking.  LOL?  No, seriously! 
I myself know people who commit this horror routinely, and I don't know a lot 
of 
people in a city of 7 million.  No wonder not just the parking lots, even the 
roads around the new big retail stores are full of cars all the time.  One 
columnist even wrote that condemning the low priced Tata Nano because of the 
additional pollution these cars would add to the environment was 'elitist' and 
'hypocritical' because the rich, the high income, and the upper middle income 
group folks who already drove cars didn't want the common man to have a car. 
Therefore we must promote the Nano and fight pollution at the same time.

Go figure.

Chandan


Fritz Friesinger wrote:
> Hi all,
> there was a radioshow on CBC 1 on thursday afternoon talking about the new 
> lowcost car from India!Cost here in Canada approx.2 300$can.So this stupid 
> announcer said: People who can not afford a more expensive car should walk or 
> take public transport!
> What a qualifiing statement (for his very own intelligence)
> And he went on whit statments that can Cars should have much more than a 30HP 
> or so engine,you need more power on the road!
> Well my first car ,a LLoyd Alexander TS had a full 17HP and run top 125Kmh!
> And further the guy went... we dont need those cheep cars the gonne 
> excellerate the pollution level ! 
> Fritz


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