INDUSTRY NEWS
$2500 Car Stirs World Interest
NEW DEHLI, INDIA - Industrialist Ratan Tata is expected to introduce his $2,500, four-door car possibly as early as January at Delhi's Auto Expo., according to the Financial Times.
Speculation about the unique vehicle has circulated for several years - and while the initial car will not meet emissions or safety standards of industrialized countries,
the company's strategy of using lower-cost Indian engineers and labor and every conceivable new way to cut costs opens the door to many millions of people in less-developed countries seeking to move up the personal transportation ladder. The Tata car program also has broad implications for the auto industry worldwide.
The current lowest price car produced in India, the Suzuki Maruti 800, reportedly sells for more than $4000. It is an 800cc, 3-cylinder, 37-hp car weighing 1,466 lb. It has an 85-inch wheelbase and is 135 inches long. Top speed is 75 mph. Comparative details for the $2,500 Tata car are not available, but analysts believe it will be in the same size ballpark as the Suzuki car with its "tightly spaced interior."
Tata Managing Director Ravi Kant reportedly said the $2500 car "will be a good-looking car you will want to buy." It is to be produced at a plant in West Bengal, with a capacity of 250,000 units per year - many of which will be sold with focused marketing and finance methods in rural areas.
It was reported nearly two years ago that the car would be shipped in kit form, to be assembled by dealers in response to retail orders.
The manufacturer would provide color choices for exterior panels. At press
time, it could not be learned, however, whether this remains in the plan. .
In emerging countries, personal transportation usually progresses from walking and riding on animals to bicycles to scooters to motorcycles and three-wheelers and eventually to four-wheel vehicles. Adding dimension to this are indications from
Tata, which now sells larger cars in Africa and a few European markets, that the new car could be upgraded for compliance with higher emissions and safety standards for marketing in many markets.
