India’s Tata Motor Company intends on building a new car for $2500 beginning with an annual production of 250,000. Sold in India the second half of this year they will expand their operations to Latin America, Southeast Asia and Africa. Although crash test results meet European standards production of these cars for the North American or European market would increase the cost considerably.

Just three meters long, the car holds 5 people and will revolutionize travel for millions in the third world. It has a small trunk that will hold a duffel bag or a couple of bags of groceries.

Ratan Tata, the company chairman, said, “I hope this changes the way people travel in rural India. We are a country of a billion and most are denied connectivity. This is a car that is affordable and provides all-weather transport for the family.”

The aluminum shell contains a rear-mounted two cylinder 33bhp gas engine weighing in at about a half a tonne. The standard version has a four-gear manual transmission, brakes, seatbelts, wind-down windows, steering wheel, one windshield wiper and one driver side mirror. Top speed is 65 mph. Extras include air conditioning and optional airbag. No radio, no power steering.

There are approximately five million vehicles on Delhi roads today. That meets only about a fifth of the capital’s transport needs.

Air pollution levels in Delhi are more than twice the safe limit and they are increasing their new vehicles by 1,000 a day.

Mr. Tata dismissed environmental concerns saying that the car gets 50 miles to the gallon and conforms to emission standards in India and Europe.

Canada’s emission standards have fallen from 4 percent to 2 percent of world production over the past year due mainly to the increasing intensity of emissions from developing countries.

Prime Minister Harper is right to demand the whole world commit to environmental targets. What we can do will have little effect due to the rising demand created by others using different standards.