The People's Car of the 21st Century
Thoughts before I go to sleep;
Not too long ago, I ranted about the fact that Asian civilizations and economies have been the dominant power for a large part of human civilizational history. The recent dominance of Western hegemony is all but a blip in the long line of our history. But as I said, whether is that a good thing or not is an entirely different matter.
Come this Thursday, January 10 2008 in the relatively low-keyed Auto Expo '08 in India, Tata Group via its motor vehicles subsidiary Tata Motors will be unveiling a highly anticipated new model, dubbed by many within the auto industry as the 1 Lakh (USD 2,500) car, or The People's car.

This not is not the sort of car that will give goosebumps to petrol heads like when Carlos Ghosn unveiled the "Godzila monster" Nissan GT-R in the 2007 Tokyo Motor Show. No this is not the sort of the news that will grace tuner magazines that wanabe racer boys salivate over. It will be overlooked by all but the more serious automotive and business publications.
To understand the impact of this vehicle and what am I ranting on, consider the history.
Back in the days when motoring was the preserve of the society elite and the rich, Henry Ford invented the concepted of mass production, and the whole cost-cutting mantra of "you can have it in any any colour as long as it is black." The Ford Model T practically mobilized early America created the first wave of mass motorization via these horseless carriages.

Henry Ford & and the Ford Model T.
The next wave came from Germany, when Ferdinand Porsche (along with some motivation from the villian Adolf Hitler) created the Volkswagen Bettle. Volkswagen; which loosely translates into "People's car." The icon of the Hippies and pots-smoking 60s become one of the best selling cars in history. Almost anyone can knew of someone who owns or used to own a Bettle. Of course, then came the war.

Ferdinand Porsche, Adolf Hitler and the members of the Third Reich.
In post-World War 2 Europe, fuel were scarce. Microcars like the BMW Isetta practically mobilized the entire post-war Germany. On the other side of the Euro-Saxon conflict, the British built the equally iconic Mini. A brainchild of Sir Alec Issigonis, the Mini was created during a difficult time for Britain. Due to the escallating Suez Crisis, petrol were rationed and large cars were hugely impractical.

BMW Isetta "bubblecar"

Sir Alec Issigonis and the Mini.
Like I have always said before, studying automotive history is one of the most interesting ways in learning anthropology and modern history. Like many things in life, it is not the most exotic or expensive creation that often marks our most intense experience. Supercars might be emotional to behold, but it is simple cars like these that stays in our memory. They carried humanity through times of hardship and they are a testament of mankind's resilience in the face of adversity. The icon of the 40s through the 70s were not the is not the Ferrari Daytona GTB/4, or the Lamborghini Miura, however great they may as a work of art.
As crude oil prices shoot pass USD 100 per barrel in the midst of intensifying political tensions around the world, before retreating slightly to hover around the high USD 90s, Tata's new creation will lead us into the next phase of motorization. I see the whole issue of motorization of Third World countries as a complex moral dillema. On one hand, the explosive growth of rising middle-class of India and China will exert greater stress on our already strained natural resources. But then again, what right does the developed First World have in dictating that the "new middle-class" of Asia do not have the right to pick themselves out of poverty, from pottering around in their dangerous scotters carrying a family of 4 into the safer confines of an automobile? But imagine the environmental impact and the stresses on the already clogged up archaic road systems of developing countries like India when these millions of new middle class being to drive.

Bear in mind that in order to keep the cost of these cars low, LCC (low-cost cars) have minimal exhaust emission regulation systems nor are they fitted with many of the safety features that we in the First World often take for granted. The cost of a set of ABS and airbags alone is already more than the entire LCC vehicle cost. The rationale of LCC makers is that of choosing between the lesser evil; commuting in a bare bones car is a lot safer than overloading on a scooter.
Designing cars for the developing markets of BRIC (Brazil, Russia, India, China) is one of the main challenges for many automakers as they fight for survival in cut-throat automotive industry. Over the span of less than 2 decades, the number of automakers in the world have fallen from close to 40 to less than 16. And it can very well reduce to a single digit figure over the next decade. Markets in the developed markets of the First World have saturated. And India's Tata Motors will launch the first assault of the so-called LCC (low cost car). Suzuki, Renault, Volkswagen and Toyota are all known to be working on similiar variations of the LCC project.
The reality is that our economic system is one that makes us choose one over the other - environmental preservation comes at a cost that is working at the opposite of affordability. Our economic system is one of comparative advantage - which in this case, means exploiting another weaker nation's resources and expendable human labour at a lower cost.
Either way, the launch of Tata's "1 Lakh car" is a topic worth exploring, both from the engineering as well as social aspect. I mentioned engineering because the secret to Tata's low cost is not that of cheap materials and labour, though they do play a big role. But the key behind this is in a revolutionary way of auto manufacturing that has so far been a closely guarded secret of Tata. Just as Henry Ford introduced mass manufacturing, Tata Motors will be the next evolution. It is relatively easy to built an expensive luxury / supercar. Though I have immense respect to the creators of the Bugatti Veyron, but then again, how difficult it is to built a good car when you have an almost inexhaustible budget? Building a low-cost car, now that's the real challenge.

By the way, do not laugh at Tata Motor's new foray into the automotive sector. For the uninitiated, Tata is known for building very tough and reliable trucks and buses. They are one of the main suppliers of military trucks and vehicles to the Indian government. Oh, and not forgetting, Tata is primed to take over British icons Land Rover and Jaguar from their current owner Ford Motor Company, as Ford slowly nurses itself back from the mess it is in right now.
Talk about colonization...a couple of hundred years ago, the British made the Moguls and Maharaja's of India their puppets. Fast forward to 2008, India is now pulling off a modern day equivalent of colonization, one that is done via economic might rather than military. MG-Rover now belongs to the Chinese of SAIC. Lotus to Malaysians of Proton. I guess history has come a full circle.

This entry has been updated here.
Not too long ago, I ranted about the fact that Asian civilizations and economies have been the dominant power for a large part of human civilizational history. The recent dominance of Western hegemony is all but a blip in the long line of our history. But as I said, whether is that a good thing or not is an entirely different matter.
Come this Thursday, January 10 2008 in the relatively low-keyed Auto Expo '08 in India, Tata Group via its motor vehicles subsidiary Tata Motors will be unveiling a highly anticipated new model, dubbed by many within the auto industry as the 1 Lakh (USD 2,500) car, or The People's car.

This not is not the sort of car that will give goosebumps to petrol heads like when Carlos Ghosn unveiled the "Godzila monster" Nissan GT-R in the 2007 Tokyo Motor Show. No this is not the sort of the news that will grace tuner magazines that wanabe racer boys salivate over. It will be overlooked by all but the more serious automotive and business publications.
To understand the impact of this vehicle and what am I ranting on, consider the history.
Back in the days when motoring was the preserve of the society elite and the rich, Henry Ford invented the concepted of mass production, and the whole cost-cutting mantra of "you can have it in any any colour as long as it is black." The Ford Model T practically mobilized early America created the first wave of mass motorization via these horseless carriages.

Henry Ford & and the Ford Model T.
The next wave came from Germany, when Ferdinand Porsche (along with some motivation from the villian Adolf Hitler) created the Volkswagen Bettle. Volkswagen; which loosely translates into "People's car." The icon of the Hippies and pots-smoking 60s become one of the best selling cars in history. Almost anyone can knew of someone who owns or used to own a Bettle. Of course, then came the war.

Ferdinand Porsche, Adolf Hitler and the members of the Third Reich.
In post-World War 2 Europe, fuel were scarce. Microcars like the BMW Isetta practically mobilized the entire post-war Germany. On the other side of the Euro-Saxon conflict, the British built the equally iconic Mini. A brainchild of Sir Alec Issigonis, the Mini was created during a difficult time for Britain. Due to the escallating Suez Crisis, petrol were rationed and large cars were hugely impractical.

BMW Isetta "bubblecar"

Sir Alec Issigonis and the Mini.
Like I have always said before, studying automotive history is one of the most interesting ways in learning anthropology and modern history. Like many things in life, it is not the most exotic or expensive creation that often marks our most intense experience. Supercars might be emotional to behold, but it is simple cars like these that stays in our memory. They carried humanity through times of hardship and they are a testament of mankind's resilience in the face of adversity. The icon of the 40s through the 70s were not the is not the Ferrari Daytona GTB/4, or the Lamborghini Miura, however great they may as a work of art.
As crude oil prices shoot pass USD 100 per barrel in the midst of intensifying political tensions around the world, before retreating slightly to hover around the high USD 90s, Tata's new creation will lead us into the next phase of motorization. I see the whole issue of motorization of Third World countries as a complex moral dillema. On one hand, the explosive growth of rising middle-class of India and China will exert greater stress on our already strained natural resources. But then again, what right does the developed First World have in dictating that the "new middle-class" of Asia do not have the right to pick themselves out of poverty, from pottering around in their dangerous scotters carrying a family of 4 into the safer confines of an automobile? But imagine the environmental impact and the stresses on the already clogged up archaic road systems of developing countries like India when these millions of new middle class being to drive.

Bear in mind that in order to keep the cost of these cars low, LCC (low-cost cars) have minimal exhaust emission regulation systems nor are they fitted with many of the safety features that we in the First World often take for granted. The cost of a set of ABS and airbags alone is already more than the entire LCC vehicle cost. The rationale of LCC makers is that of choosing between the lesser evil; commuting in a bare bones car is a lot safer than overloading on a scooter.
Designing cars for the developing markets of BRIC (Brazil, Russia, India, China) is one of the main challenges for many automakers as they fight for survival in cut-throat automotive industry. Over the span of less than 2 decades, the number of automakers in the world have fallen from close to 40 to less than 16. And it can very well reduce to a single digit figure over the next decade. Markets in the developed markets of the First World have saturated. And India's Tata Motors will launch the first assault of the so-called LCC (low cost car). Suzuki, Renault, Volkswagen and Toyota are all known to be working on similiar variations of the LCC project.
The reality is that our economic system is one that makes us choose one over the other - environmental preservation comes at a cost that is working at the opposite of affordability. Our economic system is one of comparative advantage - which in this case, means exploiting another weaker nation's resources and expendable human labour at a lower cost.
Either way, the launch of Tata's "1 Lakh car" is a topic worth exploring, both from the engineering as well as social aspect. I mentioned engineering because the secret to Tata's low cost is not that of cheap materials and labour, though they do play a big role. But the key behind this is in a revolutionary way of auto manufacturing that has so far been a closely guarded secret of Tata. Just as Henry Ford introduced mass manufacturing, Tata Motors will be the next evolution. It is relatively easy to built an expensive luxury / supercar. Though I have immense respect to the creators of the Bugatti Veyron, but then again, how difficult it is to built a good car when you have an almost inexhaustible budget? Building a low-cost car, now that's the real challenge.

By the way, do not laugh at Tata Motor's new foray into the automotive sector. For the uninitiated, Tata is known for building very tough and reliable trucks and buses. They are one of the main suppliers of military trucks and vehicles to the Indian government. Oh, and not forgetting, Tata is primed to take over British icons Land Rover and Jaguar from their current owner Ford Motor Company, as Ford slowly nurses itself back from the mess it is in right now.
Talk about colonization...a couple of hundred years ago, the British made the Moguls and Maharaja's of India their puppets. Fast forward to 2008, India is now pulling off a modern day equivalent of colonization, one that is done via economic might rather than military. MG-Rover now belongs to the Chinese of SAIC. Lotus to Malaysians of Proton. I guess history has come a full circle.

This entry has been updated here.
Posted by whylikethat at 01:22 AM | Add a Comment








Tata seems the most unlikely of corporate titans - almost preternaturally humble, unabashedly open about the company's mistakes, and also about the fact that he never really wanted to be an industrialist in the first place.







