Since Ratan Tata announced that a small car priced at Rs 100,000 would be designed and manufactured, and would be available to the public, there have been several different kinds of reactions and responses.
First, disbelief — it just cannot be done.
It’s impossible. It’s out of the question. It’s technically not possible. Ratan Tata has lost his senses. Second, emulation. Other automotive companies have announced their intention to make and sell a small car, a low cost car. Perhaps not as low cost as the Tata car but somewhere near and certainly, below the price of cars currently on the market.
Third, criticism tantamount to saying that that Tata Rs 1 lakh car will add to environmental problems, climate change concerns, etc, and also that the transport congestion will get worse.
A motor car owner is supposed to be financially well-off.
Owning a car is symbolic of some wealth. The Cadillac and Rolls-Royce are the most telling symbols of the car-wealth nexus.
Generations of people, starting from the west and now including the east, have bought into this philosophy. What on earth will a Rs 1 lakh car do to this belief, concept, tradition? Blow it sky-high?
India is repeatedly chanting the mantra of inclusive growth and inclusive development, which means that everyone in India needs to benefit from, and participate in, the 9 to 10% growth opportunity and its benefits.
This is not just the government’s slogan. It has also become the industry’s chant. In fact, industry can probably claim that inclusive growth originated from an industry institution.
The renowned researcher and change leader, Professor C K Prahlad, has also taught the world about ‘the fortune at the bottom of the pyramid’, i.e., that there is purchasing power and demand at the lowest income levels of society and this is a fortune to be made if products are designed creatively at low cost and sold at low prices.
