Made in India

1408 Words Oct 21st, 2008 6 Pages
Made in India
There are about 65 million scooter owners in India. Families are forced to pile onto scooters, or make several trips to commute. Clearly, this is not an ideal form of transportation for most people. However, the low income in India has prohibited individuals from purchasing a vehicle than can cost more than $10,000. Is India’s Tata Motors new four-door, four-seat, rear-engine car for $2,500 a good alternative plan for transportation in India?
In an article, “No, No, No, Don’t Follow Us,” Thomas L. Friedman, who became the New York Times foreign affairs columnist in 1995, reporting on international issues like the Middle East conflict, U.S. domestic politics and foreign policy, and international economics, claims that
…show more content…
There is no question that there is a demand for cheap cars in India and it will be beneficial for their economy to produce cars to meet that demand. Once the people’s car is successful in India, India’s market will grow when they begin exporting to other fast-growing markets where a relatively few percent of people own cars. Soon India will not only be competing at the top of auto industry, but it will be competing at the top with the innovative People’s Car.
The People’s Car will also provide reliable, cost-efficient transportation to consumers. Tata is planning to produce 250,000 People's Cars within the first year (Giridharadas). Considering that India's middle class is almost 300 million, the potential for sales is enormous. Profits will be made, leading to benefits for both India and Tata Motors. Even if the profit margins are small, the numbers of products being sold will generate a sufficient amount to make it worthwhile for Tata Motors.
To take Friedman’s point of view into consideration, we will consider the fact that cheaper cars will increase traffic and pollution. Isn’t this inevitable? In this fast paced world, everyone wants more. Let’s consider asking Americans to give up their cars for scooters or a bus ride everyday. How many of them would allow this? Very few. I acknowledge a statement by Andrew Buncombe, a writer for The Independent, a British newspaper: “It's not about

More about Made in India

Open Document