A new car under AED 10,000?

[root]

Can this be true?
Well, this seems to be plans from Nissan and Renault in India.
Going in production in 2011 and for a price of $2500...well those are the plans and hype for the moment.

Some unofficial pics:

[rbdxb]

Yes,

The information is true. Cannot confirm the pic though.

Recently TATAs had launched the NANO a car they promised will be sold for 100,000/- Indian Rupees. i.e USD 2500/-. it is really basic-basic car with no jazz at all. imagine not even a spare tyre, (anyways how often does one use it).

The above is being launched in competition to it. they are teaming up with BAJAJ which is a leading two wheeler manufacturer in India.

This is what surprises me with India. Mercedes recently announced their highest ever sale in Indai and here we also have the market for the most basic car also getting heated up!!!

[root]

and with demand of cars, so rises the demand for fuel...which leads to even higher prices!

I wonder what the cost of running a $2500 car per year would be if oil prices are at $250 a barrel (i.e, twice todays price).

Some simple rough maths:

One barrel Oil is about 160 liters.
50% can be used as vehicle grade octane gives 80 liters.

At $250 for 80 liters, gives us at about $3 a liter.

Say this vehicle is super efficient and does 20 km per liter, then a yearly running of 10,000 km would mean 500 liters a year.

At $3 a liter that would mean $1500 per year.

So the question is that if running costs are so high, does it make sense to buy a car.

Now, my calculations are all hypothetical that increase in demand would raise petrol prices, and that governments will stop subsidizing fuel. It could get worse if governments start taxing fuel higher (which they already do in most countries).

[rbdxb]

The fuel economy was one of the biggest challenges for the TATAs. it had to be affordable for the common man of the country to operate.

It has a 620 CC MPFI engine. giving it a high milage.

http://tatanano.inservices.tatamotors.c ... Itemid=168

[root]

we need hydrogen cars!