Friday, January 11, 2008

Tata's Rs 1-lakh car - the Nano

So the much waited Tata's Rs 1-lakh car - the Nano is here. There were a lot of people questioning if Tata's could stick to their word of getting a car at such a low cost. Yes, they have proved it again that they can revolutionize this industry.
Thinking about this car, so many thoughts run through the mind - both positives and negatives.



Positives

This is definitely a boon to the middle class for whom affording a car is a dream of their lifetime. Thinking about the dust and heat that is present in our cities, this car is a big relief.
As the families grow and get little ones in to their family, people have to start thinking about getting 4 wheels. It is definitely not safe driving in India on a 2-wheeler. It is a scary picture when I see women sitting on 2-wheelers, balancing on single side of a 2-wheeler with a kid in her arm, where the kid is getting squeezed between the two parents. Sometimes, in bigger families, the elder kid is fighting for his space on the petrol tanks of the motor cycle when the driver is struggling to balance the vehicle. At times I see 3 kids and two adults on a single 2-wheeler. I think it is time for these people to upgrade to a small family car.
Rains are another nightmare times when it is very difficult to travel on 2 wheelers. Public transports are never reliable in such conditions.

Nano Taxi

Today, an auto rickshaw costs around 1 lakh to purchase. With the introduction of Nano, I think a lot of auto drivers will probably think of buying a Nano and using it as a taxi. I am sure, some smart company will quickly come out with an LPG kit for Nano, which can lower the cost of running. Given a choice I would prefer traveling by a Nano than an auto rickshaw. But for that the price of traveling by a a Nano-taxi should be comparable to traveling by a rickshaw

Negatives

Well, without having seen the car personally I cannot comment anything negative about the car. Ofcourse, one cannot expect too much for 1 lakh. The car doesn't come with most of the features (rather - no features). As they say, 'you pay peanuts, you get monkeys'. I wanted to bring out my thought on the implications that this car might bring on our infrastructure. In cities like Bangalore, people are already struggling with the terrible infrastructure. Bangalore has one of the highest vehicle density in the country. This city already boasts of the highest number of 2-wheelers in the city. The roads are all cramped. This car is just going to add to our agonies further. There are days when people take over 2 hours to reach their home after work, and in 2 years if there are a lot of cars on road, we can only think of reaching home the next day morning.
Today there is an auto rickshaw strike in Bangalore. It was a pleasure driving to office as there were no auto rickshaws on the road. I didn't have to use breaks much and I didn't have to change gears often. I think rickshaws constitute anywhere between 5-10% of vehicles on Bangalore roads. After removing more than a lakh of autos from the streets, the roads had decent traffic. Now imagine if around a couple of lakhs Nano's got added to our streets - "God help us please - are you listening". A few months back I read in News Papers that someone was making a few under passes in Bangalore in 3 day's time. I wonder when that project will see the light of the day. I hope it is time for the Govt to seriously has to start thinking about these kinds of projects.
I am not even going to talk about the fuel consumption which will add a burden on our reserves, nor am I going to talk about the heat and noise emitted by these cars.

Pricing

1-lakh is just the dealer price and one has to shell out atleast another Rs 25,000 to drive a car home. If one decides to add a few accessories like seat covers, better tires, AC,etc, then the car price will come close to 1.5 lakhs, which is still a reasonable.
If one can make a down payment of Rs 25,000 and take a loan for the rest of the moeny, then they can have a car for an EMI of around Rs 2000 p.m.

Happy Driving ...

9 comments:

Anonymous said...

Cost of Auto Rikshaw in India is near
about 1.75 lacks,
This car is cheaper than autorikshaw.

Nagendra HK said...
This comment has been removed by the author.
Nagendra HK said...
This comment has been removed by the author.
Nagendra HK said...

I posted this blog to my friends on email and here is what they had to say
_________________________
Dude wats wrong with u

R u trying to tell jus because tata's have released a 1 lakh car ,do u mean the entire population is going to purchase it.

wat is bangalore roads and blah blah all about,ur trying ti tell TATA is going to congest the roads in bangalore.

The crisis is bangalore is a serious failure from the government of karnataka.
It all a serious of cyclic events followed by invasion of industries.

its the goverment which needs to take care of the infrastructure and not TATA.

The car has been approprately designed and occupies lesser road space,and as u mentioned it does not have the features of a race car and its economic fuel consumption is also going to help put fuel rates in place.

And as far as Auto richshaws is concerned ,is the government doing enough to control the number of auto richshaws plying in a city.

Good then u stop travelling in a car and go by auto and so the others, we can selve the project.

madan

________________

Well both have raised valid points. And these are my views.



1. Nano taxi : There will be always a fixed number of people driving an auto/taxi to earn a living.

Just because Nano is launched these people’s numbers is not going to be affected or their rate of increase

might not change dramatically. I don’t think any person will become a taxi driver just because Nano was launched.

So we can safely assume the no of taxi drivers is fixed.

Off course the number of Nano taxi’s will keep increasing, its only because it is replacing an aging auto

or a new auto.



2. Traffic Congestion on Bangalore roads due to Nano Taxi:

Yes today was a breeze to drive on Bangalore roads due to auto strike.

Butttt is it due to the freed up space on roads occupied by autos or

due to the absence of them, since they were not there to force everyone else to travel at their pace?

I would like to think the latter is the reason. Since there is not much of a difference in vehicle

numbers on-road, overall.

Every auto driver worth his salt,

--Will move not more than 20kmph on busy roads.

--Will start the vehicle 10 seconds after the signal turns green.

--Will try to overtake and come in front of you whenever a signal comes up.

--Will accelerate at a pace where a bullock cart can overtake it, to reach

a mind boggling speed of 20kmph, if he is first off from a traffic signal.

--Will always occupy the right most fast lane and will force every other vehicles

including the mile long "Janti Vahana's" to overtake from the left.

And the list goes on...



Now how does the picture change if the same drivers are given a Nano?

They at least move faster, accelerate quicker, in turn increasing the average speed of traffic,

enabling us to reach our destination much earlier.



3. Traffic Congestion on Bangalore roads due to private Nano cars:

Off course we will be put through hell due to,

--Young first time drivers. Especially of the “better” variety .

--Two wheeler riders who try to squeeze this car under/between/wherever they find space for a

single wheel of the car to go through.

--Elderly middleclass retired gentlemen who will give autowallahs a run for their money

on acceleration and other parameters.

--Since it is cheaper more people are likely to thrash it on the road.



But who is accountable for all these? …as madan rightly pointed out, the GOVT.

We cannot deny the safety of a car to the common man and rural folk, due to apathy and negligence of our Govt.

Especially the “Mannina Maga” kind or “Son of the Soil” who have literally pushed Karnataka into the ground.

Imagine a guy driving a Merc or a Beemer having a similar opinion about us,

the so called “Right to own a Car” segment.



4. Pollution due to Nano:

It is a well know fact that most of the pollution is caused by trucks, adulterated autos, and

vehicles over 15 years old running carbureted engines. So the change in pollution will be miniscule

until these factors are taken care.

For the record, this engine is Euro IV compliant which is way better than any car/two wheeler

available below 20 lakhs (a calculated guess here). And as per Mr. Ratan Tata, has a lower carbon

footprint than a two-wheeler.



5. Fuel availability:

Well the shortage and import of crude is bound to increase. It is the duty of the govt to provide the same.

Do not look at Nano as just a petrol/diesel car. It is a tremendous platform for other technologies.

We can put in a Electric engine/Air Engine (Tata has a stake in MDI, http://www.theaircar.com)

/Fuel Cell /Bio Diesel in Diesel engine/ Ethanol in Petrol engine.

Surely it will be the MOST fuel efficient in India in any form it might come up with.



At the end of the day we just cannot deny the convenience of a four wheeler to more than 80%

of our population and many many many more in Africa/South America/Other developing nations in this world.



Regards,

Sree Ganesh



___________________

No reason to get excited.

It is not a 1 lakh Car it will costs 1 Lakhs 43 thousand on road in Bangalore so approx 1.5 lakhs.
Maruthi will reduce the prices of maruthi 800 by 20 thousand and it will be priced at 2 lakh on road in Bangalore. So maruthi will still be prefered for simple reason that it is a 800 CC car.
Major disadvantage of Nano is that it is underpowered people have serious doubts about its performace even with moderate load (4 adults) and other problem is that its emission level just meets standards for a new car which will become worst with the usage and it might end up polluting our cities like our autos.

But for sure this car has started a revolution in Car pricing. I think it is good for our economy but there are other infrastructure issue which is going to be a major problem for not only Bangalore but all other major cities in India.
Lets wait and watch.

Warm regards,
Keshavamurthy D

Nagendra HK said...

Madan,
I am not saying that only Nano will cause traffic congestion. Nano will only add to our agonies. I am not even saying that just because Nano is reasonalbe, more people will become taxi drivers. I am suggesting that Nano could and will bring more Nano taxis on road. Probably as ganesh mentioned, many of the aging autos could get Nano'ed
And most importantly, Tata's are not responsible for solving congestion and infrastructure problems. It is definitely our Mannina Maga and co who have to do their job

Nagendra HK

Anonymous said...

Nano will not add to agonies my dear,jus because the cost of the car is low and less,not everyone is going to buy it.
As far as running it as alternate to auto rickshaw,practically it becomes a replacement to auto rickshaw is a welcome move.
As far as mannin magga is concerned u r the real culprits,karnataka has one of the lowest voters turn out.Go and choose a right government.
Nano is a clean and classic move by TATA motors and lets stop comparing it with Audi's and Hondas
It has its own good features for the tagged price.
And dear Keshav obviously TATA can only give it to u for 1Lak,road tax and insurance u have to pay don't expect them to do that also..........madan

Anonymous said...

Madhan,
Cars are always compared with onroad prices and not ex-factory prices.
Warm Regards,
Keshavamurthy D

Anonymous said...

Something new ur telling keshav.
The manufacturer only tells ex factory price.
ur on road price changes from show room to show room.............

Anonymous said...

Something new ur telling keshav.
The manufacturer only tells ex factory price.
ur on road price changes from show room to show room.............