Storm Over My Tata Car Post.

Posted by: Bruce Nussbaum on January 9, 2008

An interesting and stormy thread is brewing over my post on the forthcoming $2,500 car from Tata Motors. A number of Indians point out that the US has done very little to raise auto mileage, curb carbon emissions, or fight global warming in general. Point very well taken and a point that I agree with totally. The US didn’t sign the Kyoto Accords and Detroit has been incredibly far behind in raising mileage standards (and as a result has lost enormous market share to Japanese car makers, such as Toyota which produces the hybrid Prius). The US appears to have woken up to global warming finally but much work needs to be done.

The failures of the US and the West, however, should not lead India or China to simply repeat its errors in economic development. India can do better. Innovations in transportation today can not only help Tata and other Indian companies gain global competitive edge, they can help India modernize without the pollution that is sure to hurt its people and the planet.

This is a moment in history where disruptive innovations in transportation and power will give huge advantage to those who succeed in making them. It’s a golden economic opportunity, not a burden.

Reader Comments

svaha

January 9, 2008 2:28 PM

Bruce you still dont get it. You reveal a bias in sympathetically suggesting that the US "appears to have woken up....". What empirical evidence can you cite? As several of the comments in your earlier post suggest -- look inward at your SUVs, TVs, PCs, and other energy sappers. The critical point on innovation is that the ball is in the West's court. The US pollutes so much and by factors over India and China that it is distracting to say "India and China dont repreat its errors...". True innovation is when the the Chinese and the Indians correct the energy-wasting developments for populations IN the western world...in your home town, NOT in Bangalore or Shanghai. Thats because most of the problem is in New York, etc. BTW, even here, given the lack of focus on science and math education in the West (would love to see an article from you on education innovation in the US) most of this energy-depence reduction work IS being done by Chinese and Indian engineers and scientists in the US.
Cheers.

Baba Prasad

January 9, 2008 11:05 PM

Actually this echoes Tom Friedman's article (in the NY Times a few weeks ago). Yes, in the short term, you're right--trafic will increase and perhaps pollution too. However as I say in a post on my blog (http://innovationalsmarts.com/?p=22)neither Nussbaum nor Friedman take into account the dynamics of how innovations interact with societies--being modified, and causing modifications. It is wrong for Friedman and Nussbaum to make assertions with such certainty. One never knows how a society and an innovation will come to terms with each other in the long run. Indian society may accept the $2,500 car or reject it.

Amelia

January 10, 2008 1:38 PM

Since I am retired and living on Social Security, the idea of buying a car (Tata Nano) for $2600 strikes a positive note. While concern for the environment is upper-most in my mind, I'm afraid that having transportation and buying groceries will have to be the priority.

Kristina

January 11, 2008 5:34 PM

It's not a question of whether or not the West is the evil polluter. It is a question of whether Asia is lured by the West's highly charged, fully saturating consumer culture or is able to redefine economic drivers in terms of Asia's own traditions. India's heritage is so rich: The real innovation would be if that culture could inspire a new economy that is unburdened by all the mistakes and excesses of the West's industrial age. To a degree, it's already happening with the sharing and/or renting of computer and phone time within small Indian communities. Moreover, for many years environmentalists have been applauding the opportunity in growing economies to leapfrog the physical trappings of industrialization with new, less resource intensive technologies. The idea that more is not better and that sharing is good is catching on in the cities of the West, with cars and bikes, for instance. For me the question isn't just 'will the Tata increase pollution' (and I think those statistics about where the greatest pollution dangers lie need expert scrutiny), but is it selling out to an imported socio-economic model when a culturally inspired local model would provide real innovation?

Shbhatia

January 11, 2008 10:03 PM

Very good point Kristina, but I wish a socio-economic model in equilibrium with the environment is that simple or even possible to come up with.
First of all, its not that Asia is 'lured' by West's culture. That culture had been systematicaly thrusted upon the East with centuries of colonization. Look at the education system in Asia, I will be surprised if any institute still teaches 'to be happy with less' by 'underexploiting' the nature, which used to be the mantra of Asian culture for thousands of years and stark opposition to the West's ideal. However, it is the West now that probably 100% of educated Asians idolize. A socio-economic model too deviant from Western ideals is hard to come from an education system setup by the West. Even if such an environmentalist model started to bloom, it would never survive the ever present multinational western corporations that would easily outsell any other product that was created keeping harmony with the nature. For e.g. Colgate-Pamolive replaced all the natural ayurvedic 'toothpaste' in India in past 50 years. In fact Western companies have applied for the patent of those natural toothpaste that were locally used for thousand of years! In short, there is no other option for the East but to compete with West in a game created by the West and with the rules set by the West OR risk getting expolited. BTW, when I say competition I dont mean this in a negative way as most of the minds in East playing the game are also creations of the Western cultural influence - kindled spirits.
If Asia was left alone in the 1600s, it would probably still be society of peace loving, meditating, spiritual folks searching for the meaning of life, with nature keeping the population under check, in harmony with the environment. The problem is, anything that is sensitive to others, is deemed as weak by the West, and one thing that West does not know is to leave something alone. East is evolving much in response to the West and hence the correlation between the socio-economic models and the innovation patterns.
It will be interesting to know your thoughts on the above Kristina.

Ps: Above is just my opinion about things, I am sorry if I hurt anybodys feelings East or West, that is not my intention.

Thanks
-Shbhatia@Vt.edu

Sheshank Reddy

January 13, 2008 6:30 PM

Bruce, nobody is going to be able to stop more people from getting access to wealth. India and China have the largest populations, they have had the most poverty. You will, inevitably, see the most growth in affluence in these two economies. As Svaha pointed out, these two countries have invested in science and technical education. They will churn the manpower that will drive industry globally. And Innovation. And Change.

More affluence = More cars. Because people need solutions to getting around.
Yes, investments in public transportation will increase and so will their usage, because the congestion demands it ( New Delhi, Bangalore, Mumbai, Hyderabad already have projects underway ). But what you seem to have missed is that both these countries have a large portion of their populations in many small towns. People in these towns will require personal transportation, they will buy cars, Tata Nano or otherwise.

And as for electric vehicles: I don't know how much you've bothered to look up on automotive design but I'd like you to look around you. Use Google. See how many successful pure-electric vehicles you find. Read the Auto Design Blog on this site. Ask yourself, why are there so few ? Where is the Electricity stored ? Do batteries pollute ? Where does the Electric Car get it's electricity from ? Burning Coal or Burning Natural Gas ? Just because there are no fumes coming out the rear of the Maini Reva [ the car you most likely, saw in Bangalore ], doesn't mean it pollutes less than the Nano.

Suggesting simplistic solutions without asking the important questions, Bruce ?

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Want to stop talking about innovation and learn how to make it work for you? Bruce Nussbaum takes you deep into the latest thinking about innovation and design with daily scoops, provocative perspectives and case studies. Nussbaum is at the center of a global conversation on the growing discipline of innovation and the deepening field of design thinking. Read him to discover what social networking works—and what doesn’t. Discover where service innovation is going and how experience design is shaping up. Learn which schools are graduating the most creative talent and which consulting firms are the hottest. And get his take on what the smartest companies are doing in the U.S., Asia and Europe, far ahead of the pack.

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