Tata's one lakh car - bring it on

Jan 10th 2008 is turning out to be one of the most anticipated days in modern Indian history. Thankfully, for the right reasons.

Tata is set to show off its 1-lakh rupees (around 2500 dollars) car at an expo. When first announced, the news was greeted with ridicule, but Tata's persistence has convinced many that they are onto something. So much so that others have joined the bandwagon.

With so much pessimism about the car, all Tata needs to show is a decent looking car with average numbers. They should have a few converts right away. It is foolish to look at such a car as an India-only or bottom-of-the-ladder only car. There are markets outside India that would welcome such a car. There are green reasons to love such a car. A safety upgrade to match stricter regulations may jack up the price, but the resulting vehicle would still be very cheap than the current offerings.

Another often heard response is that India, Indian roads and drivers are not ready for such a vehicle. Well, get ready then. You don't have much time. Really, as Ratan Tata himself has said a few times now, this will be safer than any two-wheeler. If the small car reduces 2-wheelers and auto-rickshaws in India, we all have a few million reasons to thank Ratan Tata personally! Also, such a car maybe just what we need to realize how bad the roads are, and how far behind we are in terms of building a good road network.

If, for whatever reason, the car disappoints tomorrow, be ready to swoop in on Tata shares. I don't expect them to give up, since the others are still months behind.