Would you drive a car that cost only $2,500 new?
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Facebook it! | 06/12/07
Indian vehicle maker Tata Motors is planning to launch a new car in about a year that has a price point of under $2,500. The current cheapest auto is a Suzuki Maruti 800 that goes for over four grand.
Allegedly these cars will be able to hit eighty, but I wonder what kind of compromises will be made in the design and construction to push the price this low. It’s true that engineers cost way less in India than elsewhere, and they’re likely not under a $1,500 per vehicle disadvantage just to cover retired workers’ benefits, but is that the whole deal? How long will these engines last? Will the car fall apart at highway speeds after 5,000 miles? I don’t know. It’s also likely that just about every other vehicle on the highway will win in a collision against one of these guys.
Even beyond the question of “Would you drive it?” is “Does the world need it?“ These cars will probably be pretty fuel efficient but they still will use gas, and the rock-bottom price will encourage and enable more people to buy them, adding to gasoline demand and pushing gas prices higher.
This is a tough one. $2,500 seems almost too cheap for a new car. What do you think?
7 Responses to “Would you drive a car that cost only $2,500 new?”
By Punny Money on Jun 12, 2007 | Reply
Heck, if it could provide just 3 years of reliable service, it’d be worth it compared to the prices and lifespans of most other vehicles being sold today.
By Patrick on Jun 12, 2007 | Reply
I think it is the perfect fit for the market. India is very crowded and has many people who cannot afford anything more than this.
Will the car be safe? It won’t meet European or American standards, but it will be safer than putting 3 or more people on a scooter.
Does the world need it? That part of the world does. Does North america need it? No. But do we really need Hummers?
By anoop on Jun 12, 2007 | Reply
As an owner of Maruthi 800 for over 6 years, I say it is a very road worthy car for India. Indians are definitely excited about ‘One-Lakh’ Rupees (Roughly $2500) car. This is indigenous and I am very confident that it will serve the purpose for Indian conditions. About exporting it out, usually third world countries do export cars but I haven’t seen any exported to others. Again, this car do good in Italy or England, where roads are in similar conditions compared to India.
By savvy on Jun 12, 2007 | Reply
I haven’t seen the car, but personally I’d rather pay a little more for something that isn’t “disposable”.
By Chris on Jun 12, 2007 | Reply
Most people change cars every 2-3 years anyway. You’d spend less buying the brand new $2,500 every two years than you would financing/buying (and paying taxes on)/and suffering depreciation when selling some $20,000 car. You could run it into the ground within 2 years, crush it, and buy a new one and still come out ahead.
By NCN on Jun 12, 2007 | Reply
If I lived in a city or in town, I’d definitely do this. Heck, my first car was an 84 Ford Escort Hatchback that I bought for $4000… and then drove for a year and a half… and my current pickup only cost me about $3K, and I’d prob sell it for less than $1.5K…
NCN