Tata Nano could send oil over $200 a barrel?
I’m not one to scare people with the likelihood of oil reaching $200 a barrel, but one thing stands in the way of this, and that is the world’s cheapest car, the Tata Nano. This car is the newest vehicle from Indian car maker Tato Motors, and has been produced to make motoring affordable in India.
Sean Brodrick from Money and Markets raises a very interesting point, and that is that in the U.S there are a 1,000 cars for every 1,000 adults, in Germany that figure is 550 cars for every 1,000 adults, while in India it is just four cars for every adult.
The reason for this low ownership of cars in India is because wages are low and car prices are high, but now that is about to change with the production of the $2,500 Tata Nano. It looks as though ownership of vehicles are about to go up massively, and just think India has a population of 1.1 billion.
So now with cheap motoring the Indian Government are pushing for car ownership, this will put a huge demand on India’s oil dependency, and this in turn will lead to price increasing for oil. India is the second largest when it comes to the growing automarket with China being the fastest.
Do you think that the arrival of the Tata Nano will send oil prices though the roof?
