Nano will not increase traffic congestion: Tata

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David David,

After making the world turn towards Tata, the Chairman of the company Mr. Ratan Tata, speaks about wrong perception about the Tata Nano. While addressing the share holders at the company’s annual meeting Mr. Tata said contrary to claims that the Tata Nano would result in traffic congestion and increased pollution, “the Nano will be 12 per cent less polluting than a two-wheeler.

As regards to congestion, one has to put the issue in perspective. Last year, India sold 1.2 million cars against eight million in China, while in India 7.3 million two-wheelers were sold last year. Of the total population in India, 14.5 million constitute cars and there are 80 million two-wheelers. Even at one million cars per year, over five years, we will not add more than 4-5 per cent of cars on the road. It would not be fair to blame congestion on the Nano.”

Mr. Tata said that besides launching new products, this year the company was looking at making an electric car and was competing for an Eco car in Thailand. The company had made an investment with a French company for work on a vehicle using compressed air as fuel.

The current year is going to be a very competitive and tough year due to the rising fuel price, increase in costs and inflation.Tata Motors Chairman Ratan Tata said here on Thursday. “It will be a difficult year and a daunting year but it is not necessary that it will be a bad year,” he said, addressing the shareholders at the company’s 63rd annual general meeting.

Tata Nano would be launched during the last quarter of this year, initially with a petrol engine and a diesel version would follow on very soon.

On the Jaguar-Land Rover (JLR) acquisition, Mr. Tata said there was tremendous engineering capability. Barring the current economic situation in the U.S. and Europe with high fuel prices, in the long term, they offered an interesting set of products.

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