Cheap Cars in India, Part I and II, by Mssrs. Michael and Tripp
February 27th, 2008
[Combined two posts into this single post as Pierre and Kyle submitted on the same topic. - Prof. Carr]
Submitted By: Pierre Michael
Traffic, you think you have it bad!? Check this out, watch the video. As the rate of car manufacturing in India steadily increases, traffic is noticeably worsening in crowded cities like Mumbai. Consequentially, motorized two-wheelers account for 80 percent of all vehicles. Is this safe?
Making it by on their meager salaries, many families purchase motorcycles or scooters instead of cars because that’s all they can afford. These two-wheelers become the family vehicle, not one that they take turns on, but one they all ride at the same time. These transportation woes have many families worried about their safety; but what are they to do?
With an average wage of $1,740 USD a year and $4,020 USD a year for white collar jobs, it’s easy to see why cars are out of reach for so many. A 2007 report said that 77% of Indians live on less than 20 rupees (50cents) a day.
Tata Motors, also known as Telco, made a promise to sell cars for 100,000 rupees or $2,500 USD making it the cheapest car in the world, half the price of the current cheapest. The promise however, may have been made a little hastily. Reminiscent to the $100 One Laptop per Child, the company is running into increasing costs of raw materials and facing heavy competition, but they are determined to hold to their original promised price.
There are 7.7 road accidents for every 1,000 vehicles and the Accident Risk Index is forecasted to increase fourfold by 2025 making injury almost inevitable on two-wheeled vehicles. The Nano that Tata is proposing, although light and seemingly fragile, provides a protective shielding that could be instrumental in saving lives. This poses lots of questions though. With poverty rates quickly decreasing and more people able to purchase automobiles what will the roads look like? What will happen when the roads saturate with cars? Will everything come to a standstill? What about the environmental risks that millions of new cars will pose, how should the companies and the country handle this? Isn’t there a better way?
Submitted By: Kyle Tripp
I recently watch a clip on YouTube about the unveiling of the world’s cheapest car. An Indian company named TATA makes it. The car goes for about $2500 USD. The goal behind this car is to appeal to India’s middle class citizens and families who as of now can only afford a motorcycle. This car has raised controversy with environmentalists, who say that this will just increase pollution and add to the crowding of India’s overcrowded streets. I can see where it would benefit lower to middle class families, but will this car just be bad news for the environment? In the clip it showed people in India on motorcycles with their little kids and no helmets. With the craziness of the streets in India that can’t be safe. While this new car is as cheap as they get TATA says that it meets or exceeds all safety and emission standards. I feel that this car will be better for the safety of the lower to middle class families that currently get around on a motorcycle. Though, is the safety of the environment in India currently a more important issue? Look at the clip and let me know what you think.
Entry Filed under: India, Misc., Pre-Departure
9 Comments Add your own
1. Rob Belloni | March 1st, 2008 at 2:49 pm
Looks like 880 and 237 at rush hour…
2. Nic Marlin | March 1st, 2008 at 6:23 pm
That traffic intersection looks pretty scary- but could you image what it would look like with five times as many cars on the road? I would imagine that the seemingly organized chaos would turn into madness, gridlock, or worse. Although the thought of every street in Mumbai being gridlock is stressful, the though of the impact on the environment of hundreds of thousands, if not millions, of additional cars on the streets is saddening. There really needs to be a shift in the way people are taking care of their environments and the world. I know that there has been a slight shift in the way that people are looking at this issue, however, the shift has not yet been significant enough to really make the difference. The question that I have been asking myself for a while is, “What could I (somebody) do that would inspire people to take responsibility for their environment, and move them to take actions to restore it?”
3. Mark Fairman | March 1st, 2008 at 7:12 pm
The idea behind –and ability of– creating a vehicle that is safe and dirt cheap is phenomenal. Sure there is a huge amount of congestion in the urban centers, but this new car can be extremely beneficial to the people in rural regions that need to travel distances to get to work. Maybe this will motivate some domestic companies to develop a similar model in America.
4. Simeon Trieu | March 1st, 2008 at 9:36 pm
Actually, the driving in the video is safe. It’s just that we expect people to obey the rules here in the US. Some may consider us to be unsafe because we actually assume that others will drive according to the law. It puts a different spin on traffic safety (especially since pedestrians don’t have the right of way), but overall, it’s just a different way of doing things, not necessarily wrong.
5. Sin-Yaw Wang | March 2nd, 2008 at 1:22 am
The car is way too expensive for India that, by the way, does not have the road system for more cars. What India should have developed is an electric bicycle industry like China. At US$300 each for high-end model, they are (more) affordable and easier to manufacture. They also pollute much less.
Of course, they also make less money for companies like Tata. Hmm, what’s good for the company is not for the country. Maybe that’s why there should be a stronger government. Oh, never mind, that will be China.
6. Glenn Hughes | March 3rd, 2008 at 1:00 am
Great video clip on the traffic situation in India. It really makes you think between the environment, the current traffic conditions and the introduction of a new vehicle intended to be “the Peoples Car” of India something will have to give. It is possible that with the current organized chaos that people are accustomed to, that people will adapt to the change in traffic dynamics accordingly. However, there are significant environmental, and city planning issues that must be addressed with the introduction of more cars onto India’s roads. One in particular is that a car on four wheels, no matter how small takes much more space to park than a scooter or motorcycle. If cars are accepted widely in th population as an alternative to riding on two wheels we could potentially see a significant deficiency in parking availability for motorists.
Also in an earlier post a classmate brought up the different driving style that is seen in the video clip. In the States we often assume others will obey the laws, and don’t think to drive defensively. I also highly doubt any of the drivers in that video were talking on a cell phone.
7. Jeff Mohr | March 3rd, 2008 at 2:28 pm
I agree that the environmental issue is scary and needs to be addressed. But until the technology becomes cheap enough to incorporate into vehicles like the Tata Nano, there probably won’t be any significant progress. One benefit I do see coming from the production of so many new vehicles is the pressure that will be put on Indian infrastructure. A car may enable a family to live further outside a city, but for this to work India must better their roads. I have heard over and over again that one of the major reasons China has such a big edge over India in manufacturing is because of India’s poor infrastructure. If the government or private organizations are able to better the transportation systems, there could be a large influx of business which could boost India’s economy even further.
8. Steve Munio | March 9th, 2008 at 1:58 pm
I feel the car is a great idea. To try and say that it will only increase pollution due to emissions is ridiculous. With such a low weight and an engine putting out only 33hp, it will produce little more than the average motorcycle out on the market. The problem of congested highways must be addressed eventually anyways, and maybe this will help to accelerate efforts to improve the highway infrastructure to support this progression in transportation.
9. Naomi Guy | March 12th, 2008 at 8:35 am
WOW! It appears this video is playing on fast motion, but amazingly it is not. While I believe a car built for the masses is a great idea, I can only wonder how it will change traffic concerns and peoples driving habits. I’m reminded of the claim that the safest addition to a car is a spear on the steering wheel. When danger is staring you in the face, you tend to drive a bit slower and cautiously. I’m led to believe part of the reason they can get away with this driving is that they are mostly exposed on motorcycles and respect the danger. Put them in a car and this behavior might change. Moves will become more risky and accidents more prevalent. However, in the long run, it will help growth and possibly encourage the government to improve on the infrastructure.
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