By Alistair Scrutton, Reuters, June 27, 2007

NEW DELHI - It may be an Indian consumer’s dream — cheap cars for $2,500-$3,000 within reach of millions of a swelling middle class. But it could also prove to be a traffic and environmental disaster.

Nissan Motor Co.and Renault SA announced last week they were studying a $3,000 car to compete in India against Tata Motors Ltd.’s planned low-cost “People’s Car” targeted at around $2,500 to hit the market next year.

For its supporters, cheap cars like these are what the Volkswagen Beetle was to Germany or the Mini to England — the spoils of an economic boom for aspiring middle classes. To its detractors, India will see an explosion in traffic and pollution on its already clogged roads from its more than 1.1 billion inhabitants.

It will add to India’s CO2 output just as many Western nations push the Asian giant to control emissions.

“India just can’t cope with this kind of pace of expansion,” said Anumita Roychowdhury, associate director at the New Delhi-based Centre for Science and Environment.

“It’s just not sustainable, whether from an environmental point of view or in terms of congestion.”

Read more of the Reuters article on alertnet.org.

[Airhybridblog Editor’s Note: Scuderi Group executives have been in discussions with major OEMs in India about potential licensing opportunities. The low production costs and sharply lower emissions of the Scuderi Engine provide special advantages to fast-growing, developing markets like India. To read about our most recent trip to India, click here.]