My Other Car Is a Tata

The soon-to-be-released $2,500 "People's Car". Tata has kept costs down with such spartan appointments as a dashboard that features little more than a speedometer, fuel gauge, and oil light. The car will lack basics such as reclining seats, a radio, and power steering, and will have a 650cc engine that puts out at most 70 horsepower. Tata will use basic shock absorbers up front, but the rear suspension design dates back decades. Tata's real advantage may be in development costs. India has top-notch engineers, but they're paid about a third what their counterparts in Detroit earn. Engineering a top-selling model costs about $350 million in the West, but could be about 20% of that in India. Tata will forgo features such as antilock brakes, air bags, and support beams that protect passengers in a crash. "It's safer than putting four people on a scooter, but that's it," says Sandy Munro, president of Troy. Tata could build a car that would meet U.S. or European specifications and sell for about $6,000—still a bargain in either market. Don't be surprised to see something inspired by the People's Car on a highway near you soon.