India’s Tata Motors cheap car could be good/bad for country
Filed under: Plants/Manufacturing, Hatchbacks
We told you last year about India’s Tata Motors’ plan to begin selling a four-door, rear-engined, VW Rabbit-sized vehicle for less than 100,000 Rupees, or about $2,400.
Right now, .8% of Indians can afford to own cars compared to 70% of Americans. Even so, India’s urban roads are already over-crowded, and urban planners as well as environmentalists worry that even a small increase in car ownership could be disastrous for the country.
Or it could be just the thing needed to spur the country’s economy. Optimists see the as-yet-unnamed super-cheap Tata spurring the construction of larger, more modern highways, as well as fueling stations, driving schools and car parts stores.
Either way, Tata will need to sell a whole helluva lot of ‘em since they will carry less than a 3% profit margin.
(A Tata Indigo Marina is pictured)
[Source: Sunday Herald]
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