Though Tata's Rs. one lakh car is yet to be launched but it is already in controversies. Automotive pundits are considering this car as pioneer of Indian automotive industry growth. To environmentalists, this car is a serious threat to environment. And a different set of people thinks that this car will burst the Indian traffic infrastructure.
There are very popular bikes in India that cost close to 75,000 rupees. And Tata's this so called People's car will have Rs. 1 lakh price tag. So for these extra 25,000 rupees one will get a full-fledged, four-seater car with decent engine performance and fantastic fuel economy (claims are of 25 kmpl in city!). Moreover, if finance companies keep their car loan system same for this car as other cars, effective EMI for the car would be in Rs.2,000 range for five years tenure. In nutshell, one would own this car for just Rs.25,000 as down payment and Rs.2,000 EMI!
This is why automotive thinkers are taking this car as pioneer of Indian automotive growth. If the car sells well (which I think it would), it's not just the car that is selling. It's about those hundreds of component manufacturers that are evolving too. Indians will own more cars and it means India will index better in World automotive scenario. Overall, the car may help India leap two steps in one go.
More cars on road means more pollution. Moreover, since it's a low-budget car, environmentalists are scared of the quality of production. They are suspecting more emissions from this car than any other car on road. However Tata has tried to put a hold on this particular debate area by declaring that the car would be Euro-IV compliant and would be quite eco-friendly. Ecologists wish Tata could have come up with an electric car instead. Considering pollution levels in India, many people think Maini Reva should have been real people's car provided that Govt. could subsidize the car's cost and made it available to people for just 1-lakh.
Everybody is aware with India's traffic infrastructure. There is not a single major Indian city that doesn't experience hours of traffic-jams. Narrow roads full of potholes, incapable traffic control system and Indians' driving behaviour make a perfect mess on roads everyday. This is the scenario when we are supposed to own less than 10 cars per thousand persons. You can imagine the situation when the number of vehicles doubles or triples. It's not just Tata's this car that might increase this number, it is more because of India's growing economy. More people are becoming capable of buying a car and this is happening very fast, adding hundreds of such people everyday.
In my opinion, the problems to be occurred by Tata's 1-lakh car are not because of this car in particular. The problems are there in the system, yes, this car might work as a catalyst. You can blame this car for the damages that are suspected in future but roots of the problems lie somewhere else. I wish this car could wake up Indian Govt. towards the problems ahead. I wish Govt. could take appropriate actions for solving traffic problems. I wish they could help manufacturers in producing green-fuel cars. I wish...
Meanwhile a quick news, Tata will showcase this car on 10th January, 2008 in Auto Expo, New Delhi.