New, Cheap Car in India Worries Environmentalists

"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."