Bemused…

The much awaited 1 lakh car was finally unveiled at the Delhi Auto expo yesterday. Despite the increased input costs and inflation during the 4 years of its making, it’s amazing that the price (for the basic version) remains Rs 1 lakh (dealer price)!. Tata Nano is here.

Before seeing the news yesterday, here’s what I had heard about the car (Rumors from various sources):

- It would be 2 door, 2 seater car.
- Top speed would be relatively low
- Safety would be compromised to keep manufacturing costs low
- No Airconditioning
- Power nothing (as in power steering, power windows et al)

Given all this, who would buy this car, I thought. Would we, the Indian middle class, buy a car that has compromised on a lot of ‘regular’ car features? Especially in a ‘loan driven’ market where one could buy a ‘regular’ car for affordable EMIs, and with the second hand market being very appealing.

Add to these the following considerations (derived from rumors above):
- it cannot be driven for long distances and is primarily a city drive car.
- It can carry only 2 people and has limited luggage space.
- People buy 2 wheelers not only because of their affordability, but also for convenience (given our crowded roads)

My thinking was that the market for this car would primarily be:
- folks who need a second car primarily for city driving.
- youngsters (on whom this will be forced upon by parents. A 4 wheeler is more safe than 2 wheelers, right? )

I wasn’t sure if the consumers for whom this car has been designed for (typical middle class families with 4 members) would form the bulk of the owner community, given that they aren’t getting anything much extra other than two additional wheels and a roof.

Now, here’s the reality:
- It is a 4 door, 4 seater car
- Top speed is 60 kmph (as quoted here)
- It has met all safety standards
- Air conditioning in Deluxe versions
- Larger interior space than Maruti 800
- Power ? (I’m not sure)
… and it looks cute!

Though it is much better than what the rumor mills predicted, the base Rs 1 lakh model is still not going to be a ‘regular car’. But it definitely would be a convenient, beautiful city car. But I am still confused about whether this is going to be a ‘people’s car’ or a ‘rich man’s second car’. Lets wait and see. But one thing is for sure - We will all get more Radio Mirchi time in traffic once the Nano hits the roads.

Stumble it!