[sustran] Re: MMRDA will file PIL to block Tata's Rs1 lakh car

Anupam Gupta, CLSA anupam.gupta at clsa.com
Tue Jul 10 14:02:14 JST 2007


Hi All - I've attempted to reply to each of your points individually. Do
forgive me, if I've missed anyone out and thanks very much for your answers.

 
Alan Howes - Chandrashekhar can't ban the car. Only the legal process can.
What he's said is that he will file a "Public Interest Litigation" and move
the court on this issue. It will be left on the court to decide (a) whether
the PIL should even be listened to at all and if yes, then to (b) hear the
matter. 
 
Lee Schipper - you said "if clean, slow, safe and truly small," 
 
"Clean" - In India, Euro III norms are applicable in metros and a handful of
key cities and Euro II in all other areas. Tata's car will comply with all
these norms. (Note that diesel accounts for about 20% of car sales in India
and we have CRDI engines although these are not mandatory). 
 
"Slow" - not sure what you meant, but its a 630cc engine and I guess the BHP
will also be on the lower side. 
 
"Safe" - there are no safety requirements in India for cars. One reason why
they're so attractively priced. (cheapest car in India retails at just over
US$5,000). 
 
"Truly small" - we still don't know the specs, but it will have to be
smaller than 4,000mm to qualify as a "small car" and get lower excise duty.
I fear you bust scenario is more likely than a boom scenario. 
 
Congestion pricing in Mumbai has been specifically ruled out by the Chief
Minister of Maharahstra (who also happens to be Dr. Chandrashekhar's boss).
My personal view is that this car will indeed turn "more two wheeler
drivers/riders into victims of l lakh four wheelers". That's where Dr. C is
also coming from. 
 
Walter Hook - Indeed, banning the car would be outrageous. As outrageous as
Mumbai's urban planning, which seems to be devoid of sustainability and
scalability. As I mentioned above, the Govt is strictly anti-congestion
pricing. As for "market-oriented parking charges" - well, that's not
happening either. More and more the Govt is looking at creating supply
everywhere without a thought for the longer term. For example - on parking,
the Municipality has suggested building huge underground car parks in
certain areas. So we're talking - more supply for parking so that more
people use cars to travel more often on roads that don't expand as often.
Something's not right in that. 
 

 
Regards,
Anupam Gupta
+91 22 6650 5074
Mobile +91 98204 98981
 

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