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Tata Nano could send oil over $200 a barrel?

By: Peter Chubb | January 17, 2008 | 5 Comments

Tata Nano could send oil over $200 a barrel

I’m not one to scare people with the likelihood of oil reaching $200 a barrel, but one thing stands in the way of this, and that is the world’s cheapest car, the Tata Nano. This car is the newest vehicle from Indian car maker Tato Motors, and has been produced to make motoring affordable in India.

Sean Brodrick from Money and Markets raises a very interesting point, and that is that in the U.S there are a 1,000 cars for every 1,000 adults, in Germany that figure is 550 cars for every 1,000 adults, while in India it is just four cars for every adult.

The reason for this low ownership of cars in India is because wages are low and car prices are high, but now that is about to change with the production of the $2,500 Tata Nano. It looks as though ownership of vehicles are about to go up massively, and just think India has a population of 1.1 billion.

So now with cheap motoring the Indian Government are pushing for car ownership, this will put a huge demand on India’s oil dependency, and this in turn will lead to price increasing for oil. India is the second largest when it comes to the growing automarket with China being the fastest.

Do you think that the arrival of the Tata Nano will send oil prices though the roof?

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  • Ram

    Hii,
    Am from Mauritius, i think that petrol price will go down, because it has small engine that uses a little amout of fuel. Perhaps all people will use the Tata nano instead of there big car.
    In future the tata nano can become a hybrid vehicles and it will be more fuel efficiency.

    Thanks

  • http://www.revaindia.com/ vj

    all electric small car – buy reva

  • jay young

    so, you mean to say that gas prices are affected by small fuel-efficient vehicles?
    what then, about the gas guzzling SUVs whose numbers keep increasing & multiplying on our roads today? you mean to say they have no contribution at all?

  • Ehud Sussman

    This car may reduce world gas consumption.
    First, India’s currently consumes about one tenth the gasoline the the United States consumes. If americans were to drive more efficient cars it would reduce consumption. More importantly, this car is more fuel efficient than many 3 and 2 wheelers which it will replace.

  • http://www.fotolog.com/cripple_rooster Daniel

    Because of its lower fuel consumption compared with larger cars, it probably will not send oil prices over $200… People, don’t forget the Nano can have a diesel-fueled version, capable to run on biodiesel.