Motoring - today and beyond

When the stock market crashed on 22nd Jan, I went into a shopping spree. For many people, a stock market crash is a black day in the history. A stock market crash when the fundamentals are strong also makes the stock cheaper, and hence presents an opportunity of getting good stocks quite cheap.

My friend advised me to buy some Tata Motors. Tata motors has been in the news for quite a lot of reasons. The Jaguar deal with Ford, and of-course the Nano. Much has been written about the Nano - how it will create a chaos on the streets, the pollution levels will rise etc etc.

The Nano, IMHO, will provide a big boost to the cab industry in IT-cities in India. The diesel Indi-cab comes for nothing less than 4.xL. In this amount, the cab-walas can probably buy 3 Nanos. The streets in Bangalore and Pune to some extent dont present an opportunity to achieve speeds greater than 60. With Nano on the streets, the congestion on the roads will increase further. Mileage should not be a concern because Nano boasts something around 20kmpl, slightly more than an Indi-cab.

What most people dont know is that Tata has invested in a company called MDI. Check out their website http://www.theaircar.com. There are a couple of good news reports that one can read. Tata has bought the license to build and market the car in India. The car will be available in India in a couple of years probably, and will be priced around 3500$. The real issue will be the ease with which one can re-fuel the car.