Out of Control Policy Blog

India pioneers $2,500 car

For those wishing the car would just go away, India has a surprise: Tata motors is going to be selling the "People's Car" for just $2,500.

Next fall, the Indian automaker Tata Motors is scheduled to introduce its long-awaited People's Car, with a sticker price of about $2,500. Hot on its tail may be as many as half a dozen new ultra-affordable vehicles – some from the world's leading carmakers, including Toyota and Renault-Nissan.

India is expected to overcome China next year as the world's fastest growing car market, according to the New York Times.

To tap that emerging market, automakers are starting to respond to Indians' desire for small and cheap cars. As a result, car companies are coming up with new ways to develop and build automobiles worldwide.

Unfortunately, planners in India and China are more focused on providing transit than planning for the emergence of the auotmobile. Can you say "congestion"? They ain't seen nothin' yet.

Samuel Staley is Research Fellow


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