Pollution and Overcrowding in India

Pollution and Overcrowding in India

Growing car ownership is severely straining India's

already congested urban infrastructure. If the Nano

proves a big success, India's road network seems unable

to absorb millions of new cars. Burgeoning car owner-

ship in India and China are straining the world's already

self-destructive carbon footprint. India suffers from

severe pollution. Throughout southern Asia, a thick

brown cloud of particulate continually blocks the sun,

altering weather patterns and causing health problems.

The cloud is a by-product of emissions from coal-fired

power plants, cars and trucks, and wood-burning

stoves. As India industrializes, the country's water, air,

and soil are under increasing environmental pressure.

Most Indians make their living from farming, and pollu-

tion has reduced growth yields of rice, wheat, maize,

and sorghum.

Competitors

In addition to Tamo, several automakers have plans to

enter the cheap car market in India. For example, Re-

nault, Nissan, and India's Bajaj Motors plan to jointly

build a $2,500 car. Nissan CEO Carlos Ghosn aims to

make emerging markets a cornerstone of his firm's plans

for global growth. Ford, Hyundai, Toyota, and General

Motors are all developing inexpensive, small cars for emerging markets. Several Chinese companies already

manufacture various car models, both for export and do-

mestic consumption, and a few firms are exploring ultra-

cheap options. Japan's Suzuki sells the Maruti 800 in

India, retailing for about $4,500.

Global Financial Crisis and Opportunities

for Emerging Global Giants

Just as automotive sales declined in recent years, many

automakers have launched new models, which boosted

global competition. Tamo is well positioned to weather

the recent global financial crisis. First, it enjoys low-cost

production capacity, partly based on employing inexpen-

sive labor in India.