Policy Wise

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Policy Wise has argued previously that ”it is the dynamics of competition whose benefits are likely to be far more relevant in assessing the overall net benefits of NANO”. Barely a month after the launch of Nano, TATA group has announced its support for a car which would run on compressed air with zero emissions.

The car will be driven by compressed air stored in carbon-fibre tanks.

The tanks, built into the chassis, can be filled with air from a compressor in just three minutes - much quicker than a battery car.

Alternatively, it can be plugged into the mains for four hours and an on-board compressor will do the job.

For long journeys the compressed air driving the pistons can be boosted by a fuel burner which heats the air so it expands and increases the pressure on the pistons. The burner will use all kinds of liquid fuel.[link]

Whether the technology is feasible or not remains to be seen. But the very fact that the TATA group is prepared to back such an ambitious venture is an indication that the small car market is here to stay. No doubt, it is hard to predict its size especially because some of the interest in smaller cars–especially in America–is due to rising gas prices. It remains to be seen if the interest would be sustained if there is a correction in gas prices.

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