Mr Tata has warned that inflation and the rising price of materials will mean the price tag going up in the future "" but that should not be a worry in a country where 7-8 million two-wheelers are sold. A fraction of them converting to four wheels would ensure the success of the Tata Nano. But the car will have competition, as there are other car makers, some of them from the big league, who are toying with the idea of similar low-priced cars. Carlos Ghosn of Renault has already made the plunge and has asserted that such a project can only be done in India. Suddenly the needs of a developing market, like India, are getting priority with leading car makers. This is not very different from post-World War II Europe, which lapped up cost-effective transportation. Automotive legends such as the VW Beetle, the Citroen 2CV and the Fiat 500 were born out of the socio-economic conditions that forced car makers to reinvent the wheel. The Tata Nano, which features a rear engine format like that of the Beetle, has all the ingredients to join that list of illustrious automotive designs. The fact that it meets the necessary crashworthiness and emission norms of the day enhances its appeal. It might have started as a widely misquoted dream of one man "" but Ratan Tata has ensured that he has turned it into an opportunity to take his firm to new heights. |