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I see what you mean about safety.

Do you think a large increase in car ownership will lead to an even higher economic growth rate than India is experiencing now? What about infrastructure like fuel supply, gas stations, repair shops, etc? Will those be able to keep up with the rate of car purchases? What kinds of things are you hearing from people over there? Thanks.

"Once we got to the point where twenty/something's needed a place on the corner that changed the oil in their cars we were doomed . . ."
-NickDG

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I see what you mean about safety.

Do you think a large increase in car ownership will lead to an even higher economic growth rate than India is experiencing now? What about infrastructure like fuel supply, gas stations, repair shops, etc? Will those be able to keep up with the rate of car purchases? What kinds of things are you hearing from people over there? Thanks.



Certainly more economic growth - a car for 4 people mean more people can actually go out and eat with their families as compared to before. More people can go shopping together as compared to squeezing into an overcrowded bus earlier. People might employ more chauffeurs but the downside is that fake drivers licenses are going to pop up and people who dont have the required training or licenses are going to be on the road creating more accidents. More mechanics are going to find work and on the other side, two wheeler manufacturers are going to push their prices down to remain attractive. Meaning people who are currently using bicycles or public transport to commute will now find motorcycles affordable

There is adequate infrastructure in terms of fueling stations etc. but I expect a growth to meet the increased vehicle ownership. Also, where mechanics are trained to repair and fix two wheelers there will be an increase in people increasing their skill sets to include 4 wheelers. Other leading manufacturers in India like Suzuki and Chevy have also announced plans to introduce a low cost car so all this is going to add up in the long term. The main problem as I see it is going to be traffic congestion. Most major Indian cities are choking under current traffic - example what used to be a 15 minute commute for me in 2000 is now a 1.5 hour commute - so I dont know how the government is going to address this problem. Possibly through a "congestion tax" or by seizing private property and breaking them down to expand roads.

A lot of my friends back in India are already planning to purchase such a car as a second car but one has to understand the Indian consumer mindset. They are a cautious lot - will wait for the first few 1000 "scapegoats" and see how the car performs in terms of fuel mileage and reliability. If the car is able to get through 1-2 years with low complaints this is going to be the #1 car in India. Also, the Indian people are very indigenous in creativity. They'll find ways to make the car run on non-manufacture approved fuel alternatives. Back when I was in college it was routine to find people replacing petrol based engines with LPG or Natural Gas based engines and thus making transport cheaper. I used to have a calibration device that would allow me to precisely mix kerosene with petrol so that I could lower my fuel bill without excessively lowering the life of my engine.

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>More mechanics are going to find work . . .

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"The cities will be part of the country; I shall live 30 miles from my office in one direction, under a pine tree; my secretary will live 30 miles away from it too, in the other direction, under another pine tree. We shall both have our own car. We shall use up tires, wear out road surfaces and gears, consume oil and gasoline. All of which will necessitate a great deal of work ... enough for all."

Le Corbusier, The Radiant City (1967)
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Needless to say, there's a downside to that, too.

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Needless to say, there's a downside to that, too.



The western viewpoint of conserving / co-existing with the environment doesnt apply that well in developing nations. Development and especially economic development have greater importance over the environment. This is not to say that the viewpoint is correct but that is reality in India

As greater economic growth is achieved with education and population control the same principles of co-existence and conserving environment will gain importance - until then, people will want comfort and money over conservation.

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Thanks for the info. The kerosene blending is a pretty good idea. You do what you gotta do I guess. I just started reading an nterview with Ratan Tata, and I think this is the first all-India car design. Tata and his predessors are pretty impressive people. It'll be interesting to follow the story. Thanks.

Link to interview:

http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Automobiles/Interview_with_Ratan_Tata_Making_of_Nano/articleshow/msid-2690794,curpg-1.cms

Edit: The interview covers some of the questions posted here.

"Once we got to the point where twenty/something's needed a place on the corner that changed the oil in their cars we were doomed . . ."
-NickDG

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