The cheapest production vehicle in the world was unveiled this week by Tata Motors, part of India’s Tata Group and one of the world’s largest manufacturers of commercial vehicles. From the company that presented India with its first indigenous vehicle (the Tata Indica - my parents own one), comes the Tata Nano. This new car breaks new ground by breaking the pricing barrier in India’s relatively premium automobile market. The Nano will sell for approximately Rs. 1,00,000 (or just $2500, before taxes and other charges). In comparison, vehicles in a similar class carry a price tag in the vicinity of Rs. 3,00,000 - three times as much as the Nano. AutoBlog has a short video of the launch along with a picture gallery.
The Nano will essentially answer the desire of millions of Indian households that aspire to own an inexpensive car, but have had to make do with a scooter or motorcycle. Anyone who has been on the streets of a major Indian city, Mumbai included, has seen a family of two adults and their two children remarkably balanced on a two-wheeler amidst crazy traffic. The Nano’s affordable price tag ensures that such commuters would now have a cosy seat each and an exponentially stronger chance of completing their trips safely.
While this point alone is enough to justify the Nano for its supporters, the car has quite the share of detractors who make equally (if not more) powerful points. Indian city roads are congested beyond belief already, and public transportation is already seeing severe strain. Empowering every person and his secretary to own an inexpensive car is only going to make those conditions much worse. As Mumbai city desperately tries to cope with its burgeoning fleet of cars by adding new highways and flyovers, the country will soon see this problem escalate across even its smaller cities and towns. It is not just the problem of traffic congestion - more cars with relatively inexperienced drivers spells out a recipe for chaos through accidents and rampant disregard for traffic laws.
The New York Times has a bleak report on the unveiling of the Nano. An excerpt from the article:
With a population of nearly 16.5 million, New Delhi now adds 650 vehicles to its roads each day. At last count, there were 5.4 million vehicles in all, a more than fivefold increase in 20 years; scooters and motorbikes still outnumber cars two to one.
Pity the walker in the city. Half of all fatal road accident victims are pedestrians, according to the police. Every now and then, a homeless person sleeping on the street is run over. Last week, a speeding car banged into a policeman standing at a traffic checkpoint and didn’t bother to stop; the officer was critically injured.
While I am excited to see India’s economical growth make an impact on the standard of living of its people, the viral nature of this growth is equally concerning.