Tata’s Rs.100,000 car: boon or bane for India?

It looks as though Tata’s Rs.100,000 car will be a reality next year. It is now being praised all over the world as India’s shining moment ushering in a new automobile era. When seen in the background of India’s energy crisis, it shows India’s total lack of preparedness and long-term planning failure.

On the part of Tatas, they have acted in a responsive and responsible way to deal with market realities. India’s consumers are demanding better and more comfortable private vehicles at affordable cost with greater safety than two wheelers. But who is responsible for such a market? Why is the government least concerned about the detrimental impact this project will have? The Integrated Energy Policy report of 2006 brought out by the Planning Commission has clearly shown India’s precarious energy supply/demand scenario.

A well known American magazine Forbes has described Tata’s car as ‘People’s Car’ and compared it to Ford’s Model T, Volkswagen’s Beetle and the British Motor Corp.’s Mini, all of which put a set of wheels within reach of millions of customers. It was this development that resulted in the US getting addicted to petrol. Will this be a happy development for India?

When the US, Europe and other developed countries were getting addicted to petrol, there was no fear of the world running out of petrol. The US has spent billions on developing its super efficient expressways and highways. Still some of them become virtual parking lots during busy hours. One of the biggest worries while planning to reach any place on time is traffic jams despite having personal cars. The development of private auto culture resulted in the slow deterioration of the once efficient US railway system.

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