Today, India’s giant Tata conglamorate unleashed it’s US$2,500 People’s Car. It’s supposed to be an affordable car for the developing world. Since China has such a growing car market, it made me wonder if the People’s Car would sell well here. I don’t think it will for the following reasons:
- A car called the People’s Car that isn’t made in China is an ideological embaressment to China’s Communist government that is supposed to be serving the people and creating a harmonious society. That same government is also trying to create a growing car industry within China and they probably don’t want any more foreign competitors in the country other than the others that are already here.
- The Chinese car industry is mad that they didn’t come up with the idea themselves first.
- The environmental situation in China is so bad that the central government is trying to discourage citizens from all trying to buy cars (I know that this contradicts the first point, but it’s true). Local governments such as the Shanghai Municipal Government are adding extra barriers such as auctioning off license plats so that sometimes the plate costs more than the car. People who buy plates from neighbouring provinces face restrictions on using expressways at peak hours and parking in certain areas. Tata’s People’s Car would destroy that all the efforts the governments have put into keeping cars off the road.
What do you think about the People’s Car?