Trepidation Behind the Rise of Super-cheap Cars

Tata Nano, the world's cheapest car with a pricefor two- or three- wheelers but is only going to add
sticker of $3,250 tax inclusive, drew hundreds ofto the confusion, road snarls and pollution."
Indians at this year's Auto Expo in New Delhi. TheAccording to a 2004 U.N. survey, India is the
attention is overwhelming but watchers in the autofifth-largest producer of carbon emissions around the
industry fear that the car's arrival would exacerbateglobe, releasing 250 million tons annually. The figure,
the country's mass transit condition.to note, is more than any European country. What's
"This is a good day for India," said Rajesh Bindal, amore, the territory's carbon emissions are expected
paint salesman who graced the launch of the Tatato triple by 2020.
Nano. "Now everyone can afford to travel safely inA study conducted by the New Delhi-based Center
comfort, to be modern."for Science and Environment found that average
How affordable is the Nano? The four-seatvehicle speed in the city plummeted to nine miles per
jellybean-shaped vehicle, dubbed the new People'shour in 2002 from as much as 21 miles per hour in
Car, is less than half of today's cheapest auto. The1997. The decline is blamed mainly on the rise of
Nano, which is expected to open India's improvingcompact cars. The study added the trend toward
middle class market, will be available in the territorycheap vehicles will only aggravate congestion and
this fall. But it won't be available in the United Statessmog-related illnesses.
or anywhere outside India anytime soon, said TataIn addition, what is more alarming is the increasing
Motors.number of automakers which have expressed their
Ratan Tata, 70, said he came up with the idea of anplans of producing super-cheap cars. Renault SA, a
ultra-cheap car after seeing a family of four perchedFrench automaker, is in talks with India's Bajaj Auto
on a small scooter braving city traffic. "It led me toto manufacture compact cars bearing a $3,000 price
wonder whether one could conceive of a safe,sticker. Automakers such as Ford Motor Co.,
affordable, all-weather form of transport for such aVolkswagen AG, Honda Motor Co., Hyundai Motor
family," Tata said at the opening ceremony of theCo., and Suzuki Motor Corp., have opened auto
expo.factories in India. Would the maker of brake pad
But some critics fear the anticipated repercussions ofsensor Canada go with the production of
the super-cheap car. They said the car could givesuper-cheap cars trend? That's for the industry to
more menace than miracle in India. They expect thesee.
car would contribute significantly in chaotic traffic,Environmentalists, meanwhile, are waiting for some
pollution, deprived roadways, and other concerns,solid proof of the car's aftereffects. "If the Nano
reported The San Francisco Chronicle.takes over the market from gas guzzlers, then that's
"The Nano is giving me nightmares," said Rajendranot really a problem," said Soumya Rahut, a
Pachauri, 2007 Nobel laureate and chairman of thespokesman for Greenpeace India. "This could be a
U.N. Intergovernmental Panel on Climate Change.boon, or a bane, depending on what it replaces.
"Let's not fool the public. This car will not substitute