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Small Car Flood Coming January 10, 2008

Posted by tkcollier in Economy & Business, Enviroment, Science & Technology.
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Tata unveils the Nano, world’s cheapest car | Reuters

From Tata, India’s largest company -owner of Tetley Tea and soon-to-be of Jaguar and Land Rover, will come more pressure on oil prices & the environment, as it upgrades the 3rd world from 2 to 4 wheel transportation.
The 4-seater Nano, with an engine around 625cc, will have a dealer price of 100,000 rupees ($2,500) — about half the cost of the cheapest car on today’s market, a 25-year old model from rival Maruti Suzuki.

Global car makers — initially sceptical that Tata could produce such a low-cost car — are now scurrying to make their own versions to meet the needs of cost-conscious consumers in emerging economies such as China, India and Russia.

With just 8 people in 1,000 owning a car in India, there is huge potential to upgrade bike and scooter owners, who bought about 7 million two-wheelers in 2006/07.

Ford this week said it would build a small car in India within two years, while the alliance of Nissan Motor and Renault, which has made a big success of its no-frills Logan sedan, plans a $3,000 car with Bajaj Auto.

Volkswagen, Toyota, Honda and Fiat have also said they are looking at small cars for emerging markets where strong economic growth has made car ownership a reality for millions.

Tata said it would focus on the home market for 2-3 years before considering exporting the Nano to countries in Africa, Latin America and Southeast Asia.

How they did it

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