Wednesday, January 09, 2008

Pay attention to the TATA (UPDATED)

No, this isn't a Breast Cancer awareness post, nor am I trying to get you to look at the Victoria Secret Catalogue. (recently mailed to my house oddly enough)

The Tata is the new car manufactured in India which is to have a target price of $2000 (1 Lakh). If this car does meet this price point it will become a very affordable automobile for bazillions of average Indians.

If this becomes the new 'Volkwagen' of India it will be the one-and-only cause for the $5.00/gallon of gas in the United States. Get ready for it.

Oh and by the way...gold hit $880 yesterday. How are those dollars doing?

UPDATE - A clarification on this post. As for the TATA raising gas prices. India is an emerging world economy with a huge population. If the TATA becomes a car that the average person in India can afford, this will force India's demand to new heights that will be out of this world. The increased global demand will force oil prices up in the United States.

The reason for the update was that I received a few emails telling me that people in the United States would not buy a TATA and I fully agree though that wasn't the point I was attempting to make.

3 comments:

Esther said...

Speaking of cars, there's a car being made in Australia and France that runs on compressed air. It can go 140 miles each time it's filled with air (costing about $4.00). It can only go 60mph at the most, however, it would be great for in town driving. I totally want to get one of those. Then I won't have to worry about $5 per gallon gas.

Gino said...

you'd have to get it past DOT regulations first, or nobody round here is gonna get one.

Anonymous said...

The bodacious Tata will put 100 million Indians on the road and eventually, they will have a demand for fuel that surpasses ours.

Those of you with big American SUVs will love paying the same price for gas as Europeans. I was in Italy this spring, and it took about $95 American to fill the tanks of a tiny Alpha Romeo diesel...and diesel is cheaper than gasoline over there.

That is your future. It was the great Jimmy Carter who tried to tell us this way back in 1975. Turns out that he was a visionary. Tracy, put Jimmy Carter on your list of all-time great presidents. Thank you.