The Nano is here

Tata’s small car Nano has raised too many voices and too many inquisitive glances. It was a truly ambitious project, and a prototype itself has taken all the media attention since the opening day of the auto expo; currently on at Pragati Maidan.

What amazed me is the extent to which it has been able to be on the top of the minds of the junta. Last weekend, we had been out to Taki, a tourist spot at the Bangladesh border; and a (mostly) rural area. My blue Wagon R caught the attention of the folk; not because of the color or the fact that it is new: because it resembles (!!) the Nano!! I was awestruck when I heard someone talking if this car was a nano (which automatically implies that they have never seen a Wagon R before, and probably would put the same question on every hatchback that comes their way). They had no idea that the Nano is still to reach the market, or the bookings are yet to start; or even that it is much smaller; or it comes only in white, yellow and red. Initially I was disappointed to hear the people comparing my Wagon R (which is about four times the price) with the 1 lakh Nano; but ultimately I was simply amused, to say the least.

Tata’s are known to show the way; they did set up the first private sector steel plants in the country when India was still under the British rule. The Indica was the first diesel hatchback; giving stiff competition to Maruti and Hyundai. Ratan Tata would retire at the top of his career; and he would surely be remembered in the years to come.

About the economics now: everyone is talking about the little Nano. Its too cute in looks as well as price. It is encouraging the Indian mass to get a four wheeler; but at what cost? Jagdish Khattar commented that this car has opened up a new segment. It definitely has, and a migration from two wheelers to four is expected soon; leaving bike companies in despair. Undoubtedly, Rajiv Bajaj has made a smart move to join the bandwagon with a sub $3000 car. Maruti is also expected to come up with innovations that will compensate for the expected shortfall of revenues from Alto and 800.

For an individual jumping into the foray of a 1 lakh car, what other factors does he need to look into?

One time costs: Rs 130,000 (including insurance and road tax)

Monthly cost:

Garage: Rs 1000 [Parking on the road is an alternative, but the volumes are surely going to make the metropolitan authorities disallow such nuisance. Noida already has this rule]
Fuel: Rs 1500 [600 km / month; 20 kmpl; Rs 50 / lit – Fuel prices are set to rise, thanks to $100 barrel]
Maintenance: Rs 500
Driver, strongly applicable in non self driving place like Kolkata: Rs 2500

Total: Rs 5500.

Do we expect everyone to be able to afford this? Seems unlikely.

The major concerns are infrastructure and environmental. Without an adequate infrastructure in place, it would get very difficult to sustain this system. Road tax and registration are sure to fill up coffers; but without a good initiative to utilize the money, we are planning for an urban nightmare.

Some people like me would stop using cars for work if there is a good public transportation system.

Thomas Friedman rightly said in his New York Times article that India must not blindly copy the developed world.

Only time will tell what will happen once the Nano is out in the market. But rest assured, it will surely bring in quite a lot of excitement not only in India, but also in the world where the Nano would be exported.