The introduction of cheap cars in China and India may accelerate the increase of price of gasoline in the rest of the world. That is the essence of a CNNMoney article that points to projection that India will be have annual sales of 3 million light vehicles and China roughly 17 million units by 2015. The 2 billion-plus combined populations of India and China could one day dwarf the 300 million potential car buyers in the U.S.
Even though these small, cheap cars get high milage they are for the most part being sold as the first car that an individual owns, therefore over a few years, the sheer volume of these cars adds tremendously to the world’s requirements for gasoline.
India’s Tata Nano and the Chinese Chery QQ are the cars that are sparking this revolution. TheTata Nano, a two-cylinder, four-person sedan that gets 50 miles per gallon and is priced at $2,500 while China’s Chery QQ, is a five door, 4 passenger vehicle, with a 3 cylinder, 0.8 liter engine and starts at about $3.700.
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