Thursday, January 10, 2008

The People's Car & Modern Imperialism

Today, Tata Motors achieved history by unveiling the people's car, a car to be sold in India priced at just 100,000 Rupees (about $2,500).

This car signals a new phase in the automobile revolution because it takes people in developing countries who currently transport their whole families on overloaded scooters and motorcycles and actually gives them an enclosed car where they are afforded some safety.

It is almost a boon from heaven for people like 35-year old Vijay Pawar.

Surely, everyone must be ecstatic at the prospect of people in India, and soon all over the developing world, improving their standards of living? No, not really, the elitist intelligentsia in the U.S., the likes of Tom Friedman of the New York Times introduce us to the latest form of western imperialism.

Tom Friedman proposes that India "tax it (the $2,500 car) like crazy until it has a mass transit system that can give people another cheap mobility option". Surely, the two are not mutually exclusive. Surely, efficient mass transit can be built without condemning people living in lower socio-economic strata to life without a car.

Also, I wonder if Friedman knows that the $2,500 car is powered by a 33-hp engine that provides 50 miles to the gallon or 21.26 kilometers per liter? But what the hell, let's have India tax that car like crazy so that people in rich countries don't have to feel guilty about driving giant SUVs that provide 15 miles to the gallon or 6.37 kilometers to the liter.

Who said western imperialism was dead?

3 Comments:

Blogger Ravi Ramaswamy said...

I am waiting to hear about your thoughts on the much-berated aspect of environmental pollution this new car may cause, if it does become every middle class man's daily vehicle..

1:11 PM  
Blogger Vivek said...

How much of an increase in environmental pollution can it possibly cause? At almost 22 kilometers per liter, it gives about half the fuel efficiency of an ordinary Indian motorbike.

You can comfortably seat five (and knowing Indians, will probably seat about eight), so the CO2 emissions per person will be negligible.

The most amazing thing can be if this Rs. 1 lakh car can replace autos on Indian roads. It matches European emission standards so we have the potential to clear up the smoky, kerosene fueled emissions currently choking Indian cities.

The only way this car may have a negative impact is on traffic, but India is apparently planning to spend 7.5% of GDP next year on infrastructure (a huge amount). That creates better roads and new jobs and spurs further economic growth.

With the price of oil skyrocketing, mass purchase of this car by Indians will only increase the demand for oil and will push consumers in countries like the U.S. towards downsizing from their Hummers.

5:31 PM  
Anonymous Anonymous said...

And I thought Friedman would be much more sympathetic, given his employer

6:14 PM  

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