Introducing the world’s cheapest car
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11:57 am, January 18th, 2008 - 8 comments
Categories: interweb -
Tags: International, interweb
From Time:
A lot is riding on the the world’s cheapest car. In the words of Ratan Tata, chairman of the company behind the upstart econobox, India’s “People’s Car” will be a “safe, affordable, all weather vehicle for a family which is today traveling on a two wheeler.” The entry level model is ticketed at just over $2,500 “or the equivalent of 100,000 rupees or one Lakh” a revolutionary price where the average lower middle class income is $200 a month… It could well be one of the most important cars ever designed.
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That car look like a shiny piece of junk. I rather take a ride in the wonderful BMWs purchased by our profligate (with our money)Labour government.
That car look like a shiny piece of junk. I rather take a ride in the wonderful BMWs purchased by our profligate (with our money)Labour government.
Boring…
I wonder what kind of an effect this will have. I read that the makers wanted to be able to target the overloaded-bicycle and rickshaw market, but that’s a whole lot more cars on the road. It does meet Euro IV standards though, which is impressive (I don’t know if that is because of the technology, or simply because the engine displacement is tiny and can’t pruduce a great amount of emissions).
Economically, for a place such as India, it could be a real boon though.
Millions of cars meeting Euro IV standards is still a lot of extra emissions and oil consumption.. This is where the Leftwing committment to the environment and to poverty allivation hit face-on. electric vehicles and public transport are the only way around it (unless we give up on materialism, but I don’t see that happening).
“People’s Car”
So, its a Volkswagen?
Don’t be confused by the socialist style name, this is a product of evil capitalism, pure and simple. Just because the target market is poor rather than affluent, doesnt change a thing.
Watch out kimble, all those drug dealers will want one.
http://www.nzherald.co.nz/section/2/story.cfm?c_id=2&objectid=10487560&pnum=0
What is more fascinating about this story is the underlying story happening with multinationals coming out of the 3rd world.. These are two interesting stories/editorials from recent economists that caught my eye.
Emerging-market multinationals – The challengers
Essentially, the new multinationals have had some hardwon lessons in management, no legacy plant, and new infrastructure. It has happened before – Germany (in the 19th century) Japan (twice), South Korea, Taiwan, Finland….
Similarly the change in the capital movement, where capital is going from the 3rd world to the 1st world rather than the other way around. Thats largely a consequence of the rapidly aging populations in the 1st world.
Emerging-market multinationals – Wind of change
I’m just looking forward to the inevitable set of doom and gloom books in the next decade (aka Chicken Little style). These are beloved of protectionist politicians and corporate spin doctors.
Been there, done that – got the tee-shirt from the last couple of times.