The Cheapest Car in the World
Applause for Tata's New Toy Hides Unrest in West Bengal
Champagne flows for Tata Motors, as it unveils the world's cheapest car. Hidden, however, is the struggle of the villagers whose land is needed for its production.
The cheapest car in the world, the 'Nano', was unveiled yesterday (Jan 10) at a ceremony at the Auto Centre in Delhi by Ratan Tata of the Tata Group.
The Nano: An Indian Achievement
In a race against time, which started in 2003 at the Geneva Auto Show, Tata has pulled off what it set out to achieve; to design and make ready for production the world's cheapest car by 2008. Against huge odds, doubts and mockery from other leading car producers, one of the forerunners of Indian industry has given a new, urbane car to an growing Indian market and the country's self esteem a huge boost, something seen today with the story making the front page of almost all major newspapers.
A Eye-Catching Price Tag; Affordable for Many?
The 100,000 INR (roughly $US2500) car was embarked upon by Tata as "a serious attempt to find a solution to the hazards of two wheelers in the country -- especially for families who for want of options must use a scooter or motorcycle", according to Ratan Tata (Telegraph, Jan 11 2008). Generally positive reviews from auto analysts and even rival companies in India, as well as its INR 1 lakh (100,000) price tag seem to ensure the car's market success. Sales will be anxiously watched by the motorbike industry, and rival car manufacturers have made no promises to come out with an improvement on the Nano anytime soon.
All (as is so often the case in Indian success stories), however, is not rosy. To begin with, 12.5% VAT will be added to the 100,000 price tag, as will transportation costs from the manufacturing plant at Singur, 45 km from Calcutta in West Bengal (in the east of the country). No costs have been given yet, but with Mumbai on the west coast lying 1987km away, it's likely that the overall price will not bear too close a resemblance to the 1 lakh price tag so trumped by the media.
Striking Workers and Land Disputes
Trouble brews at Singur itself, too. The plant, sited on a 935-acre plot, which will manufacture the cars, is still under construction, with desperate attempts being made to have it ready by the end of the year. There is still the ongoing problem of villagers who are unhappy with the deals they received for the land they sold in order for construction to go ahead, and yesterday around 250 locals employed as security guards protested and burned effigies of the 'Nano', resulting in work being halted for five hours. They had been promised jobs in the factory once it gets up and running, and claim that the government and Tata have reneged on the deal. Said the convener of the strike, Beecharam Manno: "we will attack a Nano whenever we see one."
So, amongst the fanfare and congratulations doled out to Tata, and the West Bengal government (the plant at Singur is yet another shot in the arm as Calcutta and the western state look ahead to a brighter future), the struggle of the ordinary people, often illiterate, in poverty and ignored goes on. It's likely that we'll see more of this as the dynamism and energy of capitalist India continues to break barriers and governments both regional and local become increasingly deaf to the people as the profits roll in.
