Invasion of the Tatas!

Tata Motors, India's largest commercial vehicle maker, has announced amibitious plans to build a new four-place, four-wheel car that will come to market for $2,500.

It's unlikely the $2,500 wondercar will come to the United States immediately. But it's only a matter of time--if not for this vehicle, then for another Tata offering (home-market Indigo Marina pictured below).

The super-cheap new car has been tried before, of course. There was the Yugo, a dismal little roller skate that listed for $3,990 when it arrived on American shores in the mid-'80s. But India is not a third-world country still reeling from decades of communism; it is a vibrant, explosively growing country in the midst of a full-on industrial revolution. I suspect Tata's initial offering will be considerably more impressive than was the Yugo, though I have my doubts they can hit that price target. $2,500 today is considerably less money than $3,990 was 20 years ago.

It's useful to examine what has happened in the U.S. market as different countries' industrial complexes have ramped up. Japan's initial American offerings were completely devoid of sybaritic appeal and dreadfully unreliable. By the late '60s, they had a lot of it down, and by the late '70s to early '80s they had all of the big stuff solved. Now they're in virtually every segment, from econobox to full-size pickup to ultra-luxury sedan, and their entries are at or near the top in each one. Did you ever think you'd see a day when Toyota felt like a more American company than Chrysler?

Fast-forward 20 years to 1985, and it's eerie how closely Korea has mirrored Japan in the U.S. market. Subpar products to start, mostly good products to follow, and thoroughly comparable products now--with the segment assault fully underway. There are fine Korean offerings in the economy car, family sedan, sports coupe, near-luxury, minivan, mini-SUV, and mid-size SUV segments, with full-on luxury sedans and probably pickups on the way.

India and China are next. Both are building on extensive supplier relationships with existing automakers, as well as lessons learned from the growing pains of Japan and Korea before them.

Though the notion of an Indian or Chinese car in the U.S. seems quaint now, I'd bet on respected, full-line offerings from both in the U.S. market in perhaps as few as 15 years. All you have to do to believe it is look at a Hyundai Azera (below) today and try to imagine it as an eventual Korean offering 15 years ago.


Images are from respective companies' literature.