Under $3000: The Race To Build Really Cheap Cars
by Justin Thomas, Virginia
on 04.24.07

Renault-Nissan is planning on building a car for under $3000. The price could be as low as $2500, which is 40% less than the least expensive sub-compact car available today. The Chief Executive of the company, Carlos Ghosn, made this announcement at a plant-opening on April 4. An Indian carmaker, Tata Motors, plans to launch a $2500 car next year. This race for the really ceap car could have a major impact on the industry as a whole.

Despite being priced under $3000, these car will be designed to be comfortable and safe. They will also be engineered from the ground up — stripped-down versions of outdated designs won't cut it. Tata's model is a four door vehicle with a 33-horsepower engine, and a top speed of around 80 mph. The automaker claims it will even pass a crash test. Whatever the lowest sticker price turns out to be, the discounting trend will hit cars across the board, from minis to SUVs.
The market for these cars is huge. According to Business Week:
There's no lack of potential customers: Hundreds of millions of Chinese, Indians, Brazilians, Russians, and others will likely join the middle class in the coming decade, and cars are sure to be at the top of their shopping lists. As a result, the global car market is polarizing: The luxury segment continues to grow, cheap cars boom, and everything else gets squeezed. By 2012, the market for vehicles priced under $10,000 is likely to reach 18 million cars, or a fifth of world auto sales, according to Roland Berger Strategy Consultants. That's up from 12 million today.
I'm sure these small, inexpensive cars get many miles per gallon. I wonder if any of the carmakers will be considering biofuel or plug-in electric models.
:: Via Business Week
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It's ironic. Tens or maybe hundreds of millions more people can now afford cars. It will actually hasten the demise of automobiles for personal transportation. That's because the remaining oil will be used up all the more quickly.
Yep, dealers always like to start you off with small, cheap samples......before you get hooked for life ;)
Disposable cars -- great "green" idea.
I don't think it matters much whether these cars have low emissions or get fantastic MPG. The bigger issue is that these cars will turn developing nations away from investing in public transportation and toward increased spending for automobile infrastructure.
"Disposable cars -- great "green" idea."
In a poor country, a $3k car is definitely not disposable.
Ah well folks.... At least they're not 'cheap' SUV's or v8's. At 33hp, I doubt it's gonna guzzle too much gas. It would be encouraging if hybrids could go down the same path, but anybody tackling the problem of affordability is likely to force more competitive prices on all cars, as you point out.
Back in the 1930's, I remember Germany produced a car with these principles. I'm sure the treehugger audience remembers 'The Peoples' Car'. They sold a few - from 1938 to 2003.
For folks I've confused, the car's also known as the VW beetle. 21.5 Million were sold.
We have seen what the "car" culture has accomplished in America (Gas, emissions and lack of publish transportation).
Now imagine 1.5 BILLION new cars on the road globally over the next 10 years. I guess we will be purchasing "air" from local distributors and killing each other for drinkable water.
$3,000 death traps!
I think I'll pass on the "less car than a geo metro". Thanks... lol new car with 33hp no options and priced cutting corners on safety or.... used car with leather, sunroof, electric windows, tint, alarm, a/c, radio, at least 100hp and is actually engineered to last and be safe in a wreck.... I'll take the latter thank you.
I live in Beijing, China and I must say, the new $5000 QQ (pictured above) is making an impact. They came out just a few years ago and are now almost as popular here as the audi A6.
If it gets 30+ miles to the gallon, I'll take 2 right now.
Keeping in mind that chinese are already preparing similar stuff, you have to make some counter attacks :)
Let's make a really cheap yet durable bus. If we can get the cost of a bus down to $100000 (compared to $500000 now), we will be able to expand our transit systems very cheaply and low-income countries will be able to replace their old buses (which we retired long ago).
This may be even more devastating news than the hundreds of coal fired power plants china will start using in the days and months ahead!
Think about it.....now that the alternative transportation sector gets some lift, the giant manufacturers do everything they can to sabotage the mission (which, for me, is putting all my bucks on sustainable energy) - by dropping the price of cars down to absurd levels.
The flood of new cars is exactly what china (and the rest of the globe) can't handle. We don't have the oil, new technologies are not ready to take over - we gotta stop --unless we LIKE the idea of catastrophic social instability and stunted economic growth.
World War III is not too far behind the latter....please read "PLAN B 2.0" by Lester Brown ---it's amazing!
I want one, now!!
;-)
I would buy one in a heartbeat. Great work commute car.
http://www.bloggingwv.com
It would be fantastic if a model was offered with a diesel powerplant. I know I'm preaching to the choir here, but Biodiesel may very well be the best fuel option in the coming years and offering an economy vehicle with a powerplant that can run on biodiesel without major (or any, in most cases) modifications would be a major step towards public acceptance of the fuel and maybe the first shot in the war against the corn lobbyists. Screw ethanol.
When is someone going to bring out a viable electric car?
Better idea is to make higher quality public transportation. car cause just trouble and expense, petrol, insurance, tax this that.
but what is the real cost of this car? I hate the idea that whole new developing nations can be destroyed by little inexpensive cars.
Great, Walmart can now sell cars alongside nazi tshirts and piss-poor Plasma TV's
that thing is UGLY
This is excellent. I would buy one of those cars in a minute. For about the down payment of a Honda or Toyota in the US, I could have a car PAID FOR with NO PAYMENTS!!!
The sad thing is that motor is about the same horsepower as a Yamaha Majesty 400cc scooter. The 0-60 time must be absolutely horrible.
Remember the 1984 Honda Civic CRX that got 67 MPG. I think it had roughly the same amount of horsepower back then. That would be great if these cars could get over 60 MPG without the need for paying for an expensive Hybrid.
this is really really good! now, we can all own a car. but on the down side, the air pollution is gonna drastically worsened.
The Pandora Effect.
Good idea, but a 33 HP engine? I know the thing is supposed to be cheap, but dang, that's just downright pathetic. It seems like it would be frustrating to drive.
Cheap cars only mean more traffic problems. With $10K car you reach work in 20 mins with a $3k on the car - drive to work - couple of hours! Not to mention the already mentioned issue related to environment. The trick is not to make newer cheaper cas but to cut down the price on the existing ones.
Wow, I am surprised that they can really make them that cheap. I can't imagine them making a large profit on them.
I guess it's the drug dealers mentallity. The first one is cheap, then you are hooked on it!
Toss is an e85 sensor to make these things flex-fuel vehicles and you're good to go!
The volkswagon is back!
Remember whe the original bug was advertised for $1999 in das states? My dad bought one of those. We still talk about the cheapest new car he ever bought.
too bad we can not buy this car in the US. I could o for somthing real cheep and is it gets wrecked etc just replace it. Seems 2 years of full coverage insurance will cover the price of this little car.
sounds great for college students like me
I currently drive a Stella scooter that I bought for $3k new and any car has to be safer than that. The scooter still gets better gas mileage but I'd still take one in a heartbeat. I don't need anything more than basic basic basic transportation.
Why all this talk about Mass Transit and being negative toward this. I read this and i think about all the poor families who may all the sudden be able to buy a viable vehicle to get to work and so forth. And who says it has to be an eco-crisis? With what some of the manufacturers are doing, it won't be long before the hybrids become more and more attainable. As with any new technology, it will be out of reach to start, but if you see that Lexus now has a hybrid, and even Ford has plans to expand their hybrids, I have to think that all in all we're moving in the right direction. (as far as eco friendly cars are concerend.) After this goes on and hybrid technology becomes cheaper, who says it can't be put into a sub 3k vehicle. I"m really not sure why the 'treehugger' community is lashing out at this. But I don't know everything.
What a stupid idea.. maybe if these cars were powered by electricity ok but putting millions of new car owners on the market is definitely not a green choice
Give me a break. If you guys are so against the creation of a low cost vehicle so that many people will be able to own a car because it will mean more people burning oil shows your stupidity. You should get off the internet since all of these servers are being powered by resource burning power plants and the RF being released from these electronic components is probably killing some rare endangered moth somewhere. You horrible moth killers! I hope a tree falls on your ass mid hug.
Dumb shits.
hahah last poster cracks me up.
I get a kick out of people who think that hybrid cars are so eco-friendly. Over the lifetime of the car, it still won't make up for the emissions it took to manufacture it; making it actually less eco-friendly than a v8 mercedes S-class. I get tired of people ignoring the little ice age we are coming out of. I get tired of the idiots who ignore the fact that life flourishes even more abundantly than before after an oil spill, and caribou populations thrive near the alaska pipeline.
i'm all for stuff that makes sense though.. like biodiesel and solar grid-tie systems.
"Over the lifetime of the car, it still won't make up for the emissions it took to manufacture it; making it actually less eco-friendly than a v8 mercedes S-class. "
Cite your sources, Jeff. I'm tired of people falling for the "cool contrarian" bullshit story. 80 to 90% of the lifecycle of a car is the gas burned, not building it, and hybrid batteries can be recycled no problem, so can the electric motors. Most of the complexity of a car is the gasoline engine, not electric part.
technology is neutral. the people behind aren't. it's exciting news. but what gets me more excited is how the 'greenies' will adapt the knowledge behind the technology for sustainable development. i'd like to see hundreds of groups, companies, cooperatives, individuals offering different and AFFORDABLE green cars or mass transport, or single transporter (bikes, cycles...)
technology for the people!
I think this is a good idea to help people who can't affor a new car replace all those very old cars they own that contaminate so much and as an effect I see a bunch of old cars being disposed/recycled, although the car companies might be playing with fire since this will dramatically reduce the sales on the expensive models if the consumer creates a taste for this cute little toy and forgets about cool looks, it's gonna be good for the consumer in the end if it happens, and of course I thinkl this will reduce emmissions by removing old cars from the streets
This will make the car industry like the printer industry. They'll have to find replaceable parts they can charge us for. Since they don't own oil companies I'm sure you can expect repairs and services to go up along with gas prices from the increased market for gas.
33 horsepower??? that car can have at least 70+ MPG, but 80 M/h maximum.........you cant drive this in highway
Anyone ever hear of a little thing called the Velorex? I think that having a small efficient auto is great, but i do think that having the engine be biodeisel run is the best idea on this post. But even then, it should get good miliage, because even biodeisel is a finite resource (only so much can be made in any given year, and you still need other crops for food).
Here's a little page that has some really interesting cars on it for you to ponder. www.microcarmuseum.com
is there enough room in the back seat where i can keep my kids locked up while i attend fuctions for opie and anthony, being their general its very important i have a large back seat.
My work schedule for the next week.
Wed 5PM-12AM
Thurs 5PM-12AM
Fri 5PM-12AM
The bus schedule in town for the next week.
Mon-Fri 7AM-5PM
Also IF everything is runing on time it takes 2 hours to get anywhere. If not I can get stranded many miles in the wrong direction with no bus comming for hours.
I have a car... but if I didn't how am I to get around?
With cities being so crowded now, what good is 0-60 in 3.9 seconds if traffic is all bumper to bumper?
I used to have a fast car and got rid of it. I saw no more need for speed with all of the traffic being so conjested.
All we need is basic transportation now, just like they have in Europe. All you need is something that gets from POINT A to POINT B. I would recommend that we all get scooters, but when it rains, then you're not in a good situation.
I think this little car combined with owning a scooter would be a great combo. When you need to pick up groceries or a passenger, this cheap car would be great. When you need to get to work or just to visit a friend, a scooter would be great.
Take a look into the Yamaha Majesty 400. That's one of the best made scooters out there and it can easily do 80-100 MPH. I've read posts about people getting up to 75 MPG with it in city/hwy mixed.
You can buy smaller scooters, but they are not safe enough to take on the Interstate.
I used to own a Yamaha Riva 180 back in the late 1980's and people would trip out when they saw me pass them doing 70 MPH with a passenger on the back. Back then I could drive 3-7 days on $1.35 worth of gas.
I drove a 31 horse power car for awhile, it is not as slow as you all think. The pickup will beat any F250 Ford. Gas wise, it beats hybrid hands down.
Drawbacks? don't expect this thing to run great in colorado. When you have more than 2 persons, expect it to crawl. If you passes by 18 wheelers, this widget will get push to the side of the highway.
This car will not clog the traffic as it is super nimble. It is sensitive to gas peddle.
Great car in the city and small commute. I certainly not going to drive this in a highway.
"The bigger issue is that these cars will turn developing nations away from investing in public transportation and toward increased spending for automobile infrastructure."
How much expendable money do the poor have to spend on cars instead of the more affordable option of public transportation? Even then, look how much more Europeans use public transportation, their wealth is comparable to our nation's.
when its launching in india
By comparison, the last and most powerful Citroen CVs built had 29-30 HP, so 33HP and better aerodynamics sounds pretty good. Acceleration is not fast but absolutely capable in city traffic. On the highway, the only price to pay is downshifting (and slowing down) to climb hills. Biodiesel capabiliry would be even better.
Electric/ bio car prices are a farse. You are not paying for technology, you are paying prices for demand. If the government said you would get a tax break on buying one of the $3000. cars, then the prices would go up to $9000.
ARGH who cares everyone talks a big game about how bad every thing is but it seems less and less is actually done about it.
gasoline cars= Pollution
electric cars= pollution
you reading your myspace messages = pollution
the point is almost everything man made on this planet is some how tied into fossil fuels or bio fuels which both cause pollution.
Unless your willing to put down your i-pod and go live under a rock you pollute
Now please if you care so much get off your ass and do something to make the world a better place because reading your ramblings is really starting to bore me...
Now to the point of this forum the little cheap car great idea.
More people with cars higher fossil fuel consumption bad,but getting the other cars companies to put out more viable hybrid/electric/hydrogen cars in order to compete sounds great...
This can be good news for the environment. A large portion of car air pollution comes from a small percent of cars that were made before less polluting technology was invented. Currently, lots of pre-owned cars from the developed countries are resold in developing countries. If affordable new cars with new pollution controls are available, more heavy polluting older cars will be put out of comission. That means filling up a bit more landfill today but emitting much less air pollution tomorrow.
Do we know if they will be available in the US?
For the poster who wanted a cheap electric car, kudus to you.
My 120V DC electric pickup truck, a GMC S-15, that works off discarded batteries, costs 30 cent a day to operate.
Any gas-burning vehicle, no matter how "green" has a cost to the planet (read the new book LIVES PER GALLON please.)
Other posters in this blog appear to be waiting for a large corporation to bring a car "to them." But, wait, those of you in Vermont likely are more self-reliant and will/can build your own green vehicle, be it electric or water, or compressed-air powered.
Let's not wait for the car makers -- let us BE the car makers!
I think that it is about time that they do this. I disagree with most of everyones statements. They are opinions that remain to be founded. At this point in time the company is still going over their feasability studies.
More people affording vehicles is very good. Everyone deserves to have things. Also, as fuel technology continues to improve, the eco issue should become noticably less of an issue.
As for public transportation is concerned- I really dont see the exstinction to that.
I believe that the cheaper car is only going to put more buying power in people's pockets.
As with what will be all the results of this low cost project, we are speaking of many many unseen variables. Variables that can be controlled for the better results.
I support the 3K Car!
Hmm... some interesting points. I was watching CNN the other week, and an economist was quite optomistic of global warming. He suggested the thought of a road from Canada to Russia. So maybe $3000 is cheap for a car in a third world country, but in a second or first world nation, it becomes cheaper then condoms, and a hell of a lot bigger. Now the only reason I'd buy one of these pop cans with a lawn mower engine is to see what the hell these people want me to die in. Would you trust a car company called Lickmyballs? Then why would you trust one named "TaTa" Moters as in goodbye?
Hmm... some interesting points. I was watching CNN the other week, and an economist was quite optomistic of global warming. He suggested the thought of a road from Canada to Russia. So maybe $3000 is cheap for a car in a third world country, but in a second or first world nation, it becomes cheaper then condoms, and a hell of a lot bigger. Now the only reason I'd buy one of these pop cans with a lawn mower engine is to see what the hell these people want me to die in. Would you trust a car company called Lickmyballs? Then why would you trust one named "TaTa" Moters as in goodbye?
I wonder how dependable or reliable it wil be? Maintenance cost and how long will they last? Quality is the scariest thing for all the major auto makers because it'll change the entire auto industry forever.
The idea of green is not to make things cheap but to get us off the oil tit.
What I see is we will give the junkie a cheap fix and get them hooked and then up the antie and raise the price and you keep coming back for more. You also go for it because it's easy and readily available. Another glut of money for the dealers. Gotta fill those pockets fast before it runs out boys.
Uncle Sam and The Big OIL sure know how to keep you attached to the oil tittie. Just imagine what electric will do to the OIL Companies.
There is plenty of business to make selling electric cars for a reasonable price and which require less maintainence and the vehicle can be fully recycled when it's full life is actually over. Not a throwaway vehicle but one that is reliable and durable.
My destiny has always been tree hugging. It has been a passion of mine since i was little seed! I regularly enjoy the spectacular view from the top of some of the most beautiful tress in the world.
PEACE OUT GREENIES.
I don't know much about green but I like the price tag for sure
At least the crash tests will be cheap.
I like better the all electric cars that I read about that will supposedly be coming out soon. Here's the link. Some here have already heard of this I'm sure.
http://pesn.com/2007/09/15/9500498_WhisperT_inflatable_electric_car/
Anyway, the body is actually made of an inflatable material similar to the structures they are developing for on the moon and and have already used for the Mars mission. This is suppose to be another cheap car for commuting at about the same price. They can ship it too you. Some assembly required. Being all electric they can be charged via solar cells that are incorporated in the body as well as regular electricity (yes I know it still creates pollution at the power plant but overall is less of a CO2 footprint). Since the body is so light then the mileage should be pretty good too I would think. No more fender benders either. Crash tests on this one should be interesting. They may have to search for it in the next county.
I just don't understand why you wouldn't be all for this car....there are many things that make it great. The fact that no more car loans with X% interest adding on...my husband and I by the time we are done paying off our car will be damn near 19,000....I could buy more than a couple of these cars...sounds great to me...plus takes some dependency away from the oil in the middle east...not to mention what it will be doing for our enviroment.....I think this car is an excellent idea and would buy one right now if I could........just tell me where to buy one and I will go get it tomorrow...lol
If the choices are driving this or driving another $3000.00 vehicle, THIS would be the greener option. San Diego does not have a transit system that will get me to work and I am driving a '86 Volvo. I am sure THIS gets better gas mileage.
Narrow minded selfish westerners - it was OK to buy up the V8's & SUV's, endulge without thought on environmental impact but, now that poor nations want to enjoy some of the conforts and economic health, which we have exploited over decates, we become defensive! We all MUST be environmentally responsible but, let's lead by example. If the US was a true free world "responsible" LEADER, it would clean up its own backyard first. As for Canadians, let's just be NICE... it is what we do best!
I'll buy one this minute!
Fuel Economy, Price & Environment. There is a mix available with some imagination and non interference by people with money to stymie the efforts. Electric is not the answer. Fuel Cost is less but more polutants in production of the electricity and disposal of the batteries. Electric Cost is more considering maintenance & up keep. Most bio fuels cause more polution than they resolve because of original prodution methods. In nearly all cases being presented today, one problem is being covered up by creating another that presently isn't obviously seen. The jump start take off people want...... you're going to loose it people, get used to it!! The cost of US Autos is not because of the workers wages as presented, it is because of greed and sloppy management at the upper levels. All big corporations for the most part work just like our US Federal Government........ a big sluggish walerus, consuming proits with little return. You want an economical auto...... using today's standards, try using the fly wheel method with a set governer on the motor and try out using the benefits of magnets that have a built in power supply that doesn't polute.
Thats great a 33hp car that will get you dumbass tree huggers killed when you try to merge on the interstate doing 30 because it has absolutely no power i will run your disposable piece of shit over with my big ass diesel truck that has over 300 hp. their are plenty of cars on the road that get great gas mileage and u can buy motorcycles that all get over 50 miles to the gallon. If you want gas mileage get a honda civic quit wasting money on stupid shit like biodiesel which causes more problems for diesel motors than anything in the world. have a nice day.
Thats great a 33hp car that will get you dumbass tree huggers killed when you try to merge on the interstate doing 30 because it has absolutely no power i will run your disposable piece of shit over with my big ass diesel truck that has over 300 hp. their are plenty of cars on the road that get great gas mileage and u can buy motorcycles that all get over 50 miles to the gallon. If you want gas mileage get a honda civic quit wasting money on stupid shit like biodiesel which causes more problems for diesel motors than anything in the world. have a nice day.
My 1980's VW Rabbit diesel had 41 hp. check the specs for yourself. I got over 300,000 miles on it with only normal repairs, traded it, met the guy who bought it a few years later, he did a lot of body and suspension work on it but the powertrain was still producing well, and he pushed it another 200,000 miles I know about. If we build them better they last long and I always got over 40mpg with it. Annual model changes are just a way to hide design centers of about three years, and to keep you on the hook! North American manufacturers should be ashamed of themselves! The sales departments are running their businesses, the engineers might as well go home! They cannot even produce a good diesel! Pathetic assholes will get what's coming to them! Toyota is already #1 that must smart!
if they would make an all electric model, (even if its top speed was only around 50mph) I would go buy one right away.
Forget it folks! The Compressed air car was suppose to be here six years ago! India is buying more of them then they are making of these! U.S won't allow it! Big Oil has always run the US and will always continue to run it! Even as it runs the Big Three Automakers into the ground for being so loyal to Big Oil! Even Obama hasn't gone after them when everybody but Big Oil is losing money! Even when the Government has to bail everybody but Big Oil out! You could build the cheapest most greenest car and they won't let you sell it! Forget it folks! You should know better by now!
To all you who think, that putting new affordable gas saving cars on the road is stupid, think about this. Alot of people who already drive gas guzzlers because there paid for want a new gas saving car but cant afford one. Plus, there are many people who have no choice but to comute to work every day and there is no bus, train, or taxi to take them. I think about the negative effects on the environment, but what can you do when you cant afford a hybrid, but need your job.
33 horsepower? I can't imagine how it could haul 4 adults and do 60mph! ... maybe downhill? lol
Guys do not believe everything you read
I have just had the "pleasure" of looking over one of these cars first hand.
For starters the TaTa will not go anywhere near 80 MPH, it could not do that going down a steep hill. The top speed it can do according to the company is 63 MPH (targeted at the average European speed limit of 100 KPH) but what they don't tell you is most models can not achieve that speed. The one I saw could but it took it around 20 seconds to get to that speed on level ground. For those who have ever driven a 60's model VW buss, this care is much, much slower.
The other thing that stood out to me was the MPG claim. The company itself now admit that it will only get about 55 MPG compared to the first claims.
Bottom line. Yes its a cheap car and many will buy them but its cheap for a very good reason.
I would not risk my daughters life in one, she would be safer on a motor cycle.
Secondly, the build quality is horrible. You can push on the pillar between the windows and the entire car moves from side to side. I suppose that is ok but the troubling thing is you can actually see the flex in the body near the bottom of the sheet metal. That is pretty scary if you ask me. Sturdy is most definitely not a word that should ever be used to describe this car.