The Impact of the $2500 Car Made by Tata Motors

India's Tata Motors has reportedly said that they will be releasing a new car this year, one that almost any consumer will be able to purchase. This new car is going for a price of $2500 but there are still worries about the growing cause of pollution and this new car adding into it.

According to the Detroit Free Press, Tata claims that the new model would be the cleanest car on the road in India and would meet the quality standards equal to any company in the world. The small engine Tata would probably put out less greenhouse gases than other cars but Dr. David Cole told AP that the cars still would not meet the US emissions standards.

Ironically, this new motor vehicle is being released in India which is a place that is already overpopulated with pollution. Tata Motors claims that it wanted to create a car that anyone could buy with just a few thousand dollars. Trying to keep up with Tata Motors, other automotive industries are trying to come out with cars that would be competitive against this new $2500 car.

According to Yahoo News, there have been a lot of environmentalists who have said that the new cheap car would cause more people to damage the environment and could lock India into a greater demand on oil.

What does this mean for consumers? Even though the car would be cheap enough for most consumers to purchase, it could cause more trouble than it is actually worth. The other automotive industries might see a decline in their sales due to the car being set at the price of only $2500 and the pollution that it would cause if everyone drove one, might cause more damage to the Ozone Layer.

If more consumers are driving these new cars, the demand for oil would become greater than what it is today. With the demand for oil, the prices would ultimately rise and this could cause chaos amongst the consumers of oil. India already purchases about 70 percent of the oil in the oil industries.

Will this put the other automotive industries out of business? This probably would not put them out of business but might put a dent in the number of people that purchase their vehicles from other dealers.