What, 1250 bucks can get me a car?

I must have been working too hard, because I think it looks really quite cool

 

OK, maybe not in yellow... 

(Very) cheap labour is the only way any company can come up with motor cost that little! The worry would be what if the other car manufacture decide to follow the footsteps.....

or NIKE could released family saloon for the first time!

Also cheap land prices to build factories on. Probably next to no health and safety legislation and workers made to work long hours every day.

 Fabulous set of stereotypical assumptions there...

Yes, of course land and labour are cheaper in India than here in UK, and manufacturing is more labour-intensive (ie less robots) than in equivalent factories in Europe, but I do think you're making some sweeping generalisations.

See here, for example.Or here, here, and here.

Perhaps they are selling at a loss. Or maybe the business is heavliy subsidised with lower tax liability than we have here in the UK. I bet most people put more fuel (in value) in their car in a year.

Maybe so, but I think the plan is just to sell huge numbers of these cars, so achieving massive economies of scale.

Latest figures I can find for India suggest about 50rs a litre, or around 65p. 

Chill out Mr. E.

While you are on line, May I ask you "What are those three words in my signature mean?"

I agree Andrew. These sort of things sell like hot-cakes in the East - remarkably like the Polski-Fiat. It's a similar story with people like TATA, they don't make much profit per car, but they sell so many it doesn't matter. That is why Henry Ford was so clever, because he managed to make a large profit per car and sell millions! It has a hint of Chevy (Daewoo) Matiz to me. It'll probably be absolutly awful compared to what we drive, and will be based on a platform decades old; but because the level of quality in India is much lower, it will seem much better. It also gives the people of India a chance to get a car that has a warranty and is company servicable unlike the old second-handers that usually swarm around. It will also be much more economical, which is something to bear in mind in busy Cities in India.

I don't know why you would want one in this country though - stick to a second-hand Ford Ka is what I say - better performance, more reliable, safer and much more comfortable!

Which three out of the four would you like defined? 

Keep an eye on our colleagues at Autocar India - I'm sure they'll be road-testing it as soon as they can get their hands on one.

But I think you're right - I'll stick to my my Subaru and my wife's Swift for the moment... 

You know what, even we Indians had many of these doubts that have been expressed. Even Indians were front-liners in opposing Tatas against making "people's car". Because, the rich wouldn't like to see the poor and the middle class ride a car which is only fractionaly less competent then their which cost them several time over.

Being an Indian its all the more difficult to succeed in India. L. N. Mittal being a good example. Other thousands of Indian entrepreneurs being other good examples. If a Suzuki or a Honda or a General Motors came out with such a low priced car in India, a huge number of Indians will queue up to hail the company that the company has made such significant sacrifices to bring a car to every Indian household, and Indian government will weave off a lot of duties etc in the name of foreign direct investment. Unfortunately, Ratan Tata, the man of words, has faced such huge challenges to bring out a car at an unbelievable price. Still there are many voices raising various concerns rather than appreciating this feat of engineering. And believe me its more inside India than outside it.

Just come to think of it, a car that runs 20 KMs for a liter of petrol, meets Euro IV and Bharat III emission norms costs a mere 1250 bucks. Yes true, like most other people I spent almost half that money per year on fuel alone

Not to begin an argument, just trying to bring some facts to your attention.

A growing number of Indians accept nothing less than the international standards.

In India you cannot get a new vehicle registered unless they meet both Euro III and India III (called Bharat III) emission norms.

Most indians would load their cars with accessories to enhance their riding experience.

So I have to say, quality norms in India are not much behind the international standards any more.

I agree with comfortable bit and may be to an extent safety (I dont expect the cheapest car in the world to also be the safest) , but performance and reliability, no way! Everything good seems to be ordinary in Indian conditions. Ka wouldn't even survive 50000 KMs on Indian roads Indian cars are a lot more reliable on Indian roads In fact, even luxury car manufacturers make some modifications before launching in India. India is a different turf

I am glad your wife uses a Swift. Very nice car. A big success in India and one of my favorites.

Cheap land, YES, true. Health and safety legislation, NO. Health and safety legislation in India are getting stricter day by day. It would be next to impossible to ignore the law for organized sector. Tatas being one of the largest industrial houses of India, are always on the radar.

I accept the point about health and safety.But somewhere along the line there must be considerable cost savings compared to European Manufacturers. At the end of the day Tata still have to make a profit even if it is very low per unit sold. No company can carry a business forward on losses, which begs the question how do they do it for $1250.