Going against the tide of commercial commonsense, Ratan Tata kept his promise of producing the Rs 1-lakh Tata Motors car and unveiled a surprisingly smart though no-frills vehicle on Thursday.
It is already being hailed as an iconic aspirational people’s car, which would be the harbinger of the next automotive revolution in India after the introduction of Maruti 800 in 1983. It opens up an entirely new segment of the market.
“I observed families riding on two-wheelers — the father driving, his young kid standing in front, his wife seated behind holding a baby. It led me to wonder if we could conceive of a safe, affordable transport for such families,” Tata said claiming a new barrier in small technology had been broken.
The 624 cc engine entry model – deluxe versions with air conditioner and power steering will also be offered – with a fuel economy of over 20 km to a litre will cost around Rs 1,25,000 in Delhi and meet Bharat III and Euro IV emission norms.
For the entry level model, that will cost about twice the price of a 100 cc motorcycle, Tata held out the promise of introducing power steering “at some point” because it enabled easy parking. A diesel variant could also be introduced, he said.
The car is expected to roll off the assembly line from Singur near Kolkata where the company is building a new plant. When the covers were finally lifted off the Nano, which is what the car has been christened, there was general admiration and more than a little incredulity that such a cheap car could actually be sleek.It was evident that its name had been carefully picked to raise visions of zing and technology rather than of a car that would only be famous because it was cheap.
Tata said the name reflected the marvel in small technology that the company had achieved. Tata Motors has 34 patents for product innovations used in the Nano.At the Nano’s unveiling during the Auto Show, the Tata chief spoke with the confidence of a man who knew he held with him the advantage of serving first.
There was also little show of modesty as he credited his engineers with “breaking new ground”. The Rs 1 lakh car was not a concept car or a prototype but a production model that would hit the market by June, he said.He also said that in commissioning the Nano, he had put his money where his heart was. He insisted the company was not going to be sacrificed for the car as a philanthropic issue, nor were the Tatas going to make “oodles of money” from selling the Nano.
Despite all the big names that were being represented at the Auto Show, it was apparent that the Nano’s unveiling was the most keenly awaited. The unveiling was immediately reported across networks abroad, which highlighted it as the world’s cheapest car with some carrying laudatory comments from auto experts who were surprised by its good looks.But, they highlighted concerns from environmentalists who claimed the expected flood of the Nano on Indian roads could create a traffic and pollution nightmare.
Conscious of this criticism, Tata told journalists that the car conformed to all the safety norms mandated by the government and had already cleared the frontal crash test. The side crash test would be carried out in accordance with even more stringent international parameters.Tata acknowledged that while there was global visibility for the small car, it was one of disbelief rather than expectation.
He was quick to point out how competitors were initially dismissive when he had first floated the idea of a Rs 1-lakh car, but that some were now in the race for producing four-wheelers in the same price band. “This is a vindication of our concept. I have the satisfaction that we are leading,” he said. But what about environment?Environmental groups have demanded mandatory fuel efficiency norms for vehicles in India. They contend that better fuel efficiency could translate into reduction in emission of carbon dioxide, a greenhouse gas.The present Bharat Stage-III standard, which Nano would meet, applies only to emission of carbon monoxide, nitrogen oxides and hydrocarbons, while ignoring carbon dioxide emissions, Soumyabrata Rahut from Greenpeace said.
“We welcome a car like Nano that claims best fuel efficiency in the small segment, but the Tata group produces other cars that are fuel guzzlers.”Another green group, Ban Asbestos Network India, has questioned whether the Tata Nano is free of asbestos, another harmful pollutant.“Carbon dioxide emitted by burning one litre fuel is constant. If we can travel more with a litre of fuel then obviously the carbon dioxide emissions per kilometre would be less,” Rahut said.
The Intergovernmental Panel on Climate Change has recommended that if the global temperature rise has to be kept to less than two degrees Celsius, then a person can emit only 800 kilograms of carbon dioxide from personal transportation.Citing the example of China, the European Union and California where these fuel efficiency norms have been implemented, Rahut said, “India could implement the efficiency norms either by setting standards on the basis of the make and type of a car, or by setting the limit of carbon dioxide for the entire range of the cars (numbers sold). Those manufacturers who cannot meet a fleet average can buy credits from those below limit.”
The domestic car market is growing at the compounded annual growth rate of 14.2 per cent. By 2050, every sixth car will be for an Indian. “We demand that the industry should phase out cars with poor fuel efficiency and replace them with cars like Nano.
