[sustran] Tommy F on Tata's new car

[Anupam Gupta]

Hi All - Remember we were discussing Dr. T. Chandrashekhar's (ex-chief of
the MMRDA) planned law suit against the Tata Group's new US$2,500 small car
to be launched in India? On the same topic, this is Thomas Friedman in the
NYT . 

(link
-http://www.nytimes.com/2007/11/04/opinion/04friedman.html?_r=1&partner=rssn
yt&emc=rss&oref=slogin ) 

 

November 4, 2007

Op-Ed Columnist

No, No, No, Don't Follow Us 

By THOMAS L. FRIEDMAN

New Delhi

India is in serious danger - no, not from Pakistan or internal strife. India
is in danger from an Indian-made vehicle: a $2,500 passenger car, the
world's cheapest. 

India's Tata Motors recently announced that it plans to begin turning out a
four-door, four-seat, rear-engine car for $2,500 next year and hopes to sell
one million of them annually, primarily to those living at the "bottom of
the pyramid" in India and the developing world. 

Welcome to one of the emerging problems of the flat world: Blessedly, many
more people now have the incomes to live an American lifestyle, and the
Indian and Chinese low-cost manufacturing platforms can deliver them that
lifestyle at lower and lower costs. But the energy and environmental
implications could be enormous, for India and the world.

We have no right to tell Indians what cars to make or drive. But we can urge
them to think hard about following our model, without a real mass transit
alternative in place. Cheap conventional four-wheel cars, which would
encourage millions of Indians to give up their two-wheel motor scooters and
three-wheel motorized rickshaws, could overwhelm India's already strained
road system, increase its dependence on imported oil and gridlock the
country's megacities.

Yes, Indian families whose only vehicle now is a two-seat scooter often make
two trips back and forth to places to get their whole family around, so a
car that could pack a family of four is actually a form of mini-mass
transit. And yes, Tata, by striving to make a car that could sell for
$2,500, is forcing the entire Indian auto supply chain to become much more
efficient and therefore competitive. 

But here's what's also true: Last week, I was driving through downtown
Hyderabad and passed the dedication of a new overpass that had taken two
years to build. A crowd was gathered around a Hindu priest in a multicolored
robe, who was swinging a lantern fired by burning coconut shells and praying
for safe travel on this new flyover, which would lift traffic off the
streets below.

The next morning I was reading The Sunday Times of India when my eye caught
a color photograph of total gridlock, showing motor scooters, buses, cars
and bright yellow motorized rickshaws knotted together. The caption:
"Traffic ends in bottleneck on the Greenlands flyover, which was opened in
Hyderabad on Saturday. On day one, the flyover was chockablock with traffic,
raising questions over the efficacy of the flyover in reducing vehicular
congestion." That's the strain on India's infrastructure without a $2,500
car.

So what should India do? It should leapfrog us, not copy us. Just as India
went from no phones to 250 million cellphones - skipping costly land lines
and ending up with, in many ways, a better and cheaper phone system than we
have - it should try the same with mass transit.

India can't ban a $2,500 car, but it can tax it like crazy until it has a
mass transit system that can give people another cheap mobility option, said
Sunita Narain, the dynamo who directs New Delhi's Center for Science and
Environment and got India's Supreme Court to order the New Delhi bus system
to move from diesel to compressed natural gas. This greatly improved New
Delhi's air and forced the Indian bus makers to innovate and create a
cleaner compressed natural gas vehicle, which they now export. 

"I am not fighting the small car," Ms. Narain said. "I am simply asking for
many more buses and bus lanes - a complete change in mobility. Because if we
get the $2,500 car we will not solve our mobility problem, we will just add
to our congestion and pollution problems." 

Charge high prices for parking, charge a proper road tax for driving, deploy
free air-conditioned buses that reach every corner of the city, expand the
existing beautiful Delhi subway system, "and then let the market work," she
added. 

Why should you care what they're driving in Delhi? Here's why: The cost of
your cellphone is a lot cheaper today because India took that little Western
invention and innovated around it so it is now affordable to Indians who
make only $2 a day. India has become a giant platform for inventing cheap
scale solutions to big problems. If it applied itself to green mass transit
solutions for countries with exploding middle classes, it would be a gift
for itself and the world. 

To do that it must leapfrog. If India just innovates in cheap cars alone,
its future will be gridlocked and polluted. But an India that makes itself
the leader in both cheap cars and clean mass mobility is an India that will
be healthier and wealthier. It will also be an India that gives us cheap
answers to big problems - rather than cheap copies of our worst habits. 

 

 

Regards,

Anupam Gupta

+91 9820 49 89 81

http://www.bombayaddict.com <http://www.bombayaddict.com/>