India builds the world's cheapest car, worries environmentalists  Millions of Indians have never been able to afford a personal automobile. In six months time, that could all change.
This summer, the Indian-based Tata Motor Company will release the Nano, the world's cheapest automobile. Recently unveiled at the Delhi Auto Exposition, the car does not contain the amenities most car owners have come to expect, such as a radio, air conditioning, or power steering. The engine, a two-cylinder, 33 horsepower motor, has been compared to a high-end lawnmower.
"In a lot of ways, it's a glorified golf cart," said Csaba Csere, Editor in Chief of Car and Driver magazine. "It's a tiny machine."
What the car lacks in size, it makes up for in efficiency. The Nano seats four, gets 50 miles to the gallon, and costs only $2,500.
Some critics are concerned about the long-term consequences of the Nano. Pollution and traffic congestion are already major problems in India, whose car population is expected to double in five years. Tata's innovation may complicate the situation, as they anticipate selling 1 million vehicles per year.
Rising oil prices worry other analysts as well. "As more of their population gets behind the wheel of cars, their demand for oil is going to increase," says Csere, "and that can only put upward pressure on prices."
Yet others are not as concerned. Auto analysts John Casesa argues that the Nano could be a solution to environmental damage.
"If each of these cars replaces two or three motor scooters," he says, "then this could be an environmental benefit to India by taking more vehicles off the road than it puts on."
American consumers interested in cheap transit may not get a chance to purchase the Nano. According to a Tata executive, they will not market the car in the United States.
The following video is from ABC's Nightline, broadcast on January 10, 2008
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