New, Cheap Car in India Worries Environmentalists

The 'Nano', a tiny car that gets 47 miles to the gallon and has low emissions, is hitting the Indian market. Environmentalists worry that the car's advantages will be outweighed by the increase in car ownership it may bring to the country.

"The Nano, which was announced in January and is expected to debut later this year, is the first in a wave of extremely cheap cars intended to put a multitude of new motorists behind the wheel for the first time. It carries a basic price of 100,000 Indian rupees, or roughly $2,500, about half the current cost of its nearest rival. The manufacturer, Tata Motors, says a wholly new market is opening up in India."

"Per capita, the number of Indians who own passenger cars is still very low when compared with developed countries -- just eight in 1,000. But, to the alarm of environmentalists, that number is growing rapidly.

Tata plans to start out producing 250,000 Nanos a year, eventually rising to 1 million. The car is expected to start rolling out late this year."

Full Story: In India, Cheap Car Will Challenge Two-Wheelers

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