Indian Car Storage On The Rise

Tata Motors, an Indian motor company, revealed today the revolutionizing and controversial Nano. (No, this new car trend is not sponsored by Apple nor does it even include a radio.)

Company Chairman Ratan Tata promised the Indian people a 100,000 rupee car, equivalent to $2,500 dollars, and that is exactly what he has delivered. India has seen a growth of per capita incomes now nearing $1,000 per year. Indian families most commonly travel by scooter, which pose dangerous circumstances for transporting a family, and specifically carrying small children. The Nano’s low cost is a promising step toward safety and convenience for India’s growing middle class.

Supporters of the Nano, and certainly Mr. Tata, are proud to highlight some of the cars environmentally friendly features. Although the basic Nano model has no radio, no air bags or passenger-side mirror, it boasts an impressive 50 miles per gallon, something U.S. cars could certainly improve on.  

Analysts say the Nano may compel other car makers to lower their costs as well. This is certainly undesirable news for the automobile industry, but consumers would welcome a break in auto prices. Pre-Nano, the least expensive car for Indians was $5,200 compared to the U.S where the cheapest option is $10,030, four times the price of the Nano and not nearly as efficient as 50 miles per gallon.

In fact, U.S. consumers can expect to pay upwards of $20,000 to get a hybrid car offering about 48 miles per gallon.

There are fewer than 10 cars for every thousand people in India, 40 per thousand in China and 450 per thousand U.S. citizens. This is where environmentalists raise concern. In 2005, Indian vehicles emitted 219 million tons of carbon dioxide, which is the leading greenhouse gas and catches a lot of blame for global warming. The Asian Development Bank predicts that this number will increase by 1.5 billion tons over the next 30 years due to the expanding middle calls and a rise in demand for low-cost cars.

A representative from the Asian Development Bank claims this is a major concern for urban development. If there is an increase in the percentage of India’s population who owns a car, there will be even more traffic on crowded streets, traffic jams and long commutes.

Tata Motor’s Nano will have a rippling effect on other industries as well. As the number of car owners in India increase, the demand for parking and car storage will also increase significantly. The Indian self storage industry and marketplace should take notice of this new storage trend and look at the possibilities ahead. Parking garages, automobile self storage and streetside parking will be prime real estate for self storage owners.

The U.S. has one of the strongest self storage industries and could be a help to Indian self storage owners by showing them the successes and pitfalls within the industry. As the economy and middle class of India expands, so will residential and commercial real estate along with self storage and the niche car storage market.

Written by Sarah Little, TQAS Director

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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.

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