Tata Group Introduces $2500 Car For The Indian Masses

Washington DC January 9, 2007; The AIADA newsletter reported that The Model T, Beetle, and Mini, some of history's most famous cars were also the ones that brought motoring to the masses and jumpstarted economic growth.

Add one more to the list: the "People's Car." Invented by India's Tata Group and set to be unveiled on Thursday in New Delhi, the People's Car will reportedly cost $2,500, less than half the price of its closest competitor.

CLICK HERE for a NYT graphic showing where costs were cut.

According to the Wall Street Journal, the benefits of a cheap, safe car aren't confined to India; as incomes rise, there's a global market for such a ride. Nissan, Ford, and others are reported to be working on such designs. That should cheer environmentalists who loathe SUVs and other fuel-guzzling four-wheelers, as well as help consumers who currently can't afford a set of wheels.

Back in India, the rollout won't immediately change the face of the country's transport. Infrastructure is poor, at best. But the more car owners there are, the more pressure they will put on local politicians to lay down better roads - or let India's better-equipped private sector do it.