Wednesday, January 09, 2008

What Dispruptions Will The Tata Nano (People's Car) Cause?

India's Tata group to launch world's cheapest car...very disruptive.

Tata People's Car
India's giant Tata Group will this Thursday unveil the world's cheapest car, which analysts say could revolutionize prices worldwide.

India's car market is a huge draw because car penetration is just seven per 1,000 people. They also import roughly 70 percent of its crude oil.

Ratan Tata, the reclusive tycoon who heads the tea-to-steel conglomerate, will kick off an auto show here with the unveiling of the long-awaited "People's Car", which will carry a sticker price of 100,000 rupees or 2,500 dollars.

Domestic and international car makers have been in a race to corner India's small car market, which accounts for over two-thirds of domestic sales in the country of 1.1 billion people.

Some things to consider:

Does a car this cheap being offered to such a large population create the tipping point for oil demand? Could this be the catalyst for a "clean car"?

Will this upcoming traffic congestion lead to an infrastructure boom? Insurance industry?

Does this car increase the size of their already enormous their middle class?

Does this affect future sales slated for US auto manufacturers?

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