There’s a fair amount of anticipation in advance of this week’s introduction of the People’s Car in India by Tata Motors. The major selling point is the $2500 price tag. It’s certainly not going to be a luxury ride, we’re talking very basic transportation here but the 600cc 4 seater could have a major impact on the motor vehicle market in India, perhaps in other countries, too.
Currently, car ownership in India is 8 per 1000 and Tata sees that number as a huge opportunity:
Tata Motors’ drive to produce a cheap, no-nonsense, small car was born from close observation of a local market where millions often ferry families of four, plus baggage, on motorbikes and scooters.
Which brings up the point of motorcycles being utilitarian only until their owners can afford to do better. Though some riders elsewhere like to point out the utility and economy of their motorcycle, cars win out very quickly as soon as the price becomes close and motorcycles revert to their primary appeals of fun, excitement and recreation. If you try to sell motorcycles as a way to save money on gas you might win a few people over, for a while, but, if even in India, a country known for millions of people riding inexpensive small displacement motorcycles, we see any appreciable inroads by Tata, you can clearly see that motorcycles don’t fit into the utility category except in very limited circumstances.
I addressed this issue before at some length when commenting on Vietnam’s move toward cars along with the idea of a transportation hierarchy and some of you brought up the points of what happens when all of those previous riders are stuck in a traffic jam with their new cheap autos. Well, I don’t know, but we may soon find out and the results could be interesting.
Link: Livemint
Link: Tata Motors
aaron says
the austin mini is widely regarded as having killed off the sidecar outfit as a popular choice for low income families… in countries like india, this really makes sense – marketingwise.
opefully the world doesn’t end up with another continent convinced we’re all entitled to an offroad-capable 8 passenger 450hp monster for single occupant daily commuting.
Mayakovski says
Maybe they will start selling them over here for those of us that just want affordable transportation, and don’t want all the bells and whistles that currently available cars come with.
Mark says
Right now the auto industry considers a “cheap car”, basic starter model, to be $8-12k. They consider a mid-range “normal car” to be ~$20k.
This car is already redefining the starter range in many companies (they’re watching) down to ~$5k.
That’s great news for consumers that will give up some things. I don’t know about safety though-
Blair says
There are quite a few concerns that making such a cheap car available in India will lead to a big rise in their fuel usage (600cc is still heaps bigger than that 150cc bikes that are most prevalent). When you see what the Indian’s manage to transport on scooters and those little 3 wheel buggies it’s easy to see that the cheap cars will become popular. I hope they’ve got strong bumpers because traffic is chaotic at the best of times.
willie schmitz says
TaTa Motors LTD. is on the move. Looks like they are gunna buy Jaguar from Ford.
http://www.msnbc.msn.com/id/22485558/
Toyota knocked off Chrysler for a big 3 spot. It’s turning into a global economy fast.
Guess Chevrolet and Harley Davidson an on the endangered species list.
beear says
if they can make car for $2500, they should able to build a bike for $500.
coho says
How do you say “People’s Car” in Hindi?
todd says
Hitler had similar aspirations and it turned into the world’s most prolific car.
I’m sure they can do it, no problem. The only reason why it won’t work in the US is because of the heavy hand legislation has in the design. No doubt this car will not have fuel injection, catalytic converters, 14 air bags, crumple zones, 15mph bumpers, leather seating, 14 cup holders…
If you put a sheet metal box with four lawn chairs over a step ladder frame (and wheelbarrel tires), who needs power steering and air conditioning? I just wish things were that simple in the US.
-todd
reddog says
Since we’re redefining cheap, does this mean the return of the $300 Super CUB.
stacius says
Todd-
I’ll take all those government regulated safety features over the death trap you describe.
JC says
“if they can make car for $2500, they should able to build a bike for $500”
I’m not sure I would want to ride a $500 bike! I imagine it would come with drum brakes all around and bias ply tires.
Prester John says
Interesting thing about the Indian motorcycle market. The bulk of the sales are 100cc machines, and have been for the last ~10 years or so. During the last 7-8 years, manufacturers Hero, Bajaj, TVS and others have been trying to get consumers to “move up” to 125cc and 150cc bikes – but the majority of Indian motorcycle purchasers have not followed the “rising affluence” market model and have resisted being up-sold. The reason seems to be fuel economy, and indeed the new Bajaj XCD125 has been a sales hit by delivering “the features of a 150cc bike with the fuel economy of a 100”.
So now Tata is going to sell automobiles to folks that won’t move up to a 150cc motorbike because it burns too much gas?
Tom
Richard says
todd: “15mph bumpers” ?
Ha Ha! Since when do any US cars have 15 mph bumpers?
(49 CFR Part 581 … barrier impact speeds of 2-1/2 mph across the full width and 1-1/2 mph on the corners.)