(100,000 Rupees = about $2,500)
At 100,000 rupees (£1,290), the People's Car, designed and manufactured by Tata, is being marketed as a safer way of travelling for those who until now have had to transport their families balanced on the back of their motorbikes....
But Tata hopes also to create a 'new market for cars which does not exist', making them accessible to India's booming middle classes made recently rich by an economy growing at around 9 per cent a year. This rapidly expanding market is potentially extremely lucrative; consultants McKinsey predict that the size of the Indian middle class will grow from 50 million now to 583 million by 2025.
Last year just over one million cars and seven million motorbikes were sold in India. Tata wants to transform some of those motorbike buyers into car owners and believes that the company can eventually sell up to a million People's Cars a year. Analysts say the project could revolutionise car prices, not just in India, but globally. Several other manufacturers have similar products in the pipeline...
http://observer.guardian.co.uk/world/story/0,,2235975,00.html...These figures alarm environmentalists, already concerned by the congestion and rising pollution levels in India's overcrowded cities. The Tata car is expected to sell for a few hundred pounds more than the most popular motorbikes and less than half the price of the current cheapest car on the market, a Maruti 800. Pollution analysts warn that such a drastic cut in prices could have devastating consequences.