The People’s Car…Or Not?

By Niyantha Shekar 5 February 2008 285 views One Comment

Co-Written With Rohan Garg.

“The people’s car” say the makers of the brand new Tata Nano – the cheapest production car in the world. With a starting price of a mere $2500, the Tata Nano promises to be a breakthrough vehicle in India, a country where only 0.007% of the population own a car. Already named by Time magazine as one of ‘The Dozen Most Important Cars of All Time’*, the Nano combines innovative engineering with an incredibly low price and aims at attracting the Indian middle class consumer. But beyond all the hype, is the Tata Nano a good vehicle? Will it revolutionize the automobile industry, in India and worldwide?

The Tata Nano at the Auto Expo 2008, New Delhi
Photo Source

Better than the competition?

The obvious domestic competition for Nano will be in the entry level sub-compact automobile segment that is currently dominated by the Maruti 800 which is priced at approximately $5100. In comparison to Maruti 800, the snub-nosed Nano is far superior in terms of technology and appearance. Let’s look into a few major areas to see why:

Technical Specifications & Performance

The Tata Nano manages to squeeze out 33 horsepower from its rear mounted twin cylinder Bosch multi-point fuel injection all aluminum 623cc petrol engine. On the other hand, the Maruti 800 manages to achieve only 2 horsepower more with a larger 796cc 3 cylinder 4-stroke water cooled engine. Both cars accelerate from 0-43 mph in between 12 to 14 seconds and peak at a maximum speed of around 68 to 75 mph. The Nano also boasts a high fuel economy of 50 mpg compared to the humble 38-40 mpg of the Maruti 800.

Side View of the Nano
Photo Source

Tata Nano interior
Photo Source

Comfort & Safety

The Nano has 21% more interior space and an 8% smaller exterior than the Maruti 800 which makes it more spacious and also more maneuverable at the same time. The base model that is priced at $2500 comes without air conditioning, radio or power steering. However, the two other deluxe versions of the Nano will provide all these features. In terms of safety, once again the Nano ends up on the winning side as it surpasses the current regulatory requirements with a sturdy passenger compartment, crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage and also tubeless tires that will take you to safety in case of deliberate punctures by potential robbers – a major concern on Indian roads.

On the whole, the Nano seems to be the clear winner when compared to its closest rival. But what we need to wait and see is whether it is as reliable as the Maruti 800.

Easy on the wallet

The Nano costs just $200 more than an auto-rickshaw (an Indian Tuk-Tuk)! It is definitely safer, more comfortable and a better ride. Also, the car’s price falls in the range of many popular 2-wheelers that form a large percentage of the automobile market share which means that the Nano will not just be offering serious competition to its 4-wheel counterparts but also challenging the 2-wheeler automobile market.

Is it green enough?

There has been a lot of talk about the Nano becoming an environmental nightmare. Some environmentalists believe that if the Nano becomes a big hit with the Indian public, the already jammed roads of India will become even more cluttered, thereby leading to more pollution. Tata Motors has every right to sell the car as long as it meets established ‘green’ requirements and the Nano conforms to Bharat Stage-III and Euro-IV emission standards. This makes the car environmentally safer than most motorbikes and a lot of the cars on Indian roads.

With the current steady increase in the number of vehicles, limited parking spaces and narrow bumpy roads, the Nano might just add to the negative externalities being faced by the general public of the metros. However, the major target audience for this car are middle class families traveling on motorbikes and so we will probably see motorbikes being replaced by a car which is a safer traveling option and safer to the environment.

Final Verdict

The idea that a Rs. 1 lakh ($2500) car could be manufactured was rubbished just a couple of years ago. The Tata Nano stands as a testament to the once seemingly far-fetched vision of Ratan Tata, Chairman of the Tata Group, and to the creativity of the engineers who have made that vision a reality. It has its share of admirers and critics, but the Nano promises to put Tata Motors and India on the map, in the automobile industry. The Tata Nano is a compact, safe, cheap car with looks that don’t make you cringe. We think it’s a good deal.

*Time - “Dozen Most Important Cars of All Time”

External Sources:
http://en.wikipedia.org/wiki/Automobile_industry_in_India
http://en.wikipedia.org/wiki/Tata_Nano

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Niyantha Shekar majors in Computer Science, loves to write, play and watch Cricket, and come up with long winding sentences. He might be considered narcissistic but he is fine with that. He goes on to say "If you don't love yourself, who will?"
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