Posts Tagged ‘Tata’
Jeff Rubin: The Age of Scarcity (04/24/08)
Wednesday, April 30th, 2008
April 30, 2008 - CIBC World Markets Chief Strategist, Jeff Rubin, says that Oil will eventually reach $150/barrel in 2010 and over $200/barrel by 2012. He cites among the leading reasons, the advent of cheap cars from India and China, or rather Tatas and Cherys, that will enable millions of middle class Asians who couldn’t previously afford a car, to do so, Take these developments and place them agaisnt the backdrop of peak oil and a decline in oil exports from key suppliers, Saudi Arabia, Russia and Kuwait, and we are in the midst of a long term supply/demand imbalance. Here are couple of excerpts:
Whether we are already at the peak in world oil production remains to be seen, but it is increasingly clear that the outlook for oil supply signals a period of unprecedented scarcity.
Our latest review of probable supply suggests oil production will hardly grow at all, with average daily production between now and 2012 rising by barely more than a million barrels per day (see pages 4-7). Despite the recent record jump in oil prices, the outlook suggests that oil prices will continue to rise steadily over the next five years, almost doubling from current levels.
While global oil supply is not growing, global gasoline demand is, and will continue to grow as cheap cars from Tata and Chery dramatically cut barriers to car ownership in the developing world. Millions of new households will suddenly have straws to start sucking at the world’s rapidly shrinking oil reserves.
Car purchases in Russia, for example, are exploding as US sales stagnate (Chart 2), while in India the advent of the Tata Nano, a car that will sell for as little as US$2,500 will allow millions of households in the developing world to own automobiles when they otherwise could not. It is the savings necessary to buy a car, not the price of gasoline that poses the greatest obstacle to fuel demand growth in those countries. But between rapidly rising domestic incomes and rapidly falling car prices, that obstacle is becoming more and more surmountable.
To read the complete report, click here:
StrategEcon: The Age of Scarcity, CIBC World Markets, April 24, 2008
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Tags: Amp, Asia, Chart, Chery, China, CIBC, CIBC World Markets, Economy, energy, Excerpts, India, Jeff Rubin, Markets, Middle Class, oil, Oil Prices, Russia, Scarcity, Tata
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World’s Cheapest Car Unveiled
Thursday, January 10th, 2008
Click to watch video from ABC News
What exactly does a $2,500 car mean for India, and for that matter, the world? How long before these cars are exported. Ratan Tata has vindicated himself of his critics, and launched a revolution for the future of car ownership and the global auto industry. Imagine, 8 years ago, Tata Motors (TTM:nyse), India’s largest manufacturer of light CV trucks and buses was not even in the passenger car business…expectations are for the company to move approximately 1 million of this model annually to start.
The launch of the Nano lays the platform for India to emerge as the hub for frugal engineering, the ability of Indian engineers to produce more with less resources. Tata’s incumbent best-seller, Indica, which was developed in India for $350-million, would have cost three times as much to develop in Detroit.
India automaker unveils the world’s cheapest car,
Reuters Published: Thursday, January 10, 2008
Reuters
NEW DELHI — India’s Tata Motors Ltd unveiled the world’s cheapest car on Thursday, bringing car ownership closer to millions of consumers in emerging markets.
The 4-seater Nano, with an engine around 625 cc, will have a dealer price of 100,000 rupees (US$2,500), and will go on sale later this year.
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Tags: Desc, Emerging Market, Emerging Markets, India, Information, Lt, Markets, risk, Tata, Video
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