It must be noted that Indica is the single largest car used for taxi operations across the country. The diesel and CNG versions remain the most fuel efficient hatchback in its segment. Considering the cost factor, an auto rickshaw price starts from Rs 1.4 Lakh and an Indica car costs Rs 3.5 Lakh and the old ambassador taxi costs close to Rs 4.5 Lakh. The Rs 1 Lakh Car would be the cheapest vehicle available. A look at history will reveal the advent of the Indica and Sumo, pushing the Ambassador and Fiat off the road. The uniquely Indian mode of transport, auto rickshaws, may also see a quick descent. The worst to be hit by the launch of this small car will be the auto rickshaw drivers. Many auto rickshaw drivers are contemplating the idea of upgrading their vehicle to the Rs One-Lakh Car.

However, the hitch lies in whether the government will allow Tata’s small car to be used for commercial purposes. If the government gives a green signal, it will sound a death knell for auto rickshaw’s and other small cars, not forgetting the higher-end two-wheelers. Taxi operators are keeping their fingers crossed over the decision that the government may take. Once the government gives its consent, the small car can become a major hit in the intra-city transportation operation and also in the tourism segment.