What is a Tata 1 Lakh car? It is the car that sells for 100,000 rupees or 1 lakh. That is roughly $2,500 US. Why is this significant? It is the worlds cheapest car in one of the largest and fastest growing automobile markets. The automobile has been a significant contributor to pollution so adding millions of vehicles will only add to this problem. There has been commentary that the car is so cheap because it lacks safety features and emissions controls. Here is a link to some specs and as you will see it is pretty bare bones by current standards.
I am currently doing some reading on India's economy and society and where the country is headed. The decisions made in India will have a profound impact on the rest of the world. If they sell 20 million of these cars the entire world will notice. India currently has an infrastructure deficit in many areas of transportation. Add cheap cars to the mix and this problem is exacerbated. Also, if more Indians own cars will they follow the U.S. style car culture of drive through fast food, suburbs and all the negative aspects associated with it?