India's 'Model T': Transport Revolution or Nightmare?

"For millions of people in the developing world, Tata Motor's new $2,500 four-door subcompact - the world's cheapest car - may yield a transportation revolution with as great an impact as Henry Ford's Model T, which rolled off an assembly line one century ago.

The potential impact of Tata's Nano has given environmentalists nightmares, with visions of the tiny cars clogging India's already-choked roads and collectively spewing millions of tons of carbon dioxide into the air.

Industry analysts, however, say the car may soon deliver to India and the rest of the developing world unprecedented mobility.

The basic model, expected to roll of assembly lines this year, will sell for 100,000 rupees, or about $2,500, but analysts estimate customers could pay 20 to 30 percent more to cover taxes, delivery, and other charges.

Company chairman Ratan Tata, who introduced the car at India's main auto show, has long promised a $2,500 "People's Car" for India - a country of some 1.1 billion where only seven of every 1,000 people own a car. That vow has been much-derided by the global industry which said it would be impossible without sacrificing safety and quality."