Cheaper cars means more expensive petrol

Cheaper cars means more expensive petrol

It’s basic economics. If you make cars cheap (like Tata’s new $3,500 car for India), the plebeian masses can afford to drive whereas really they should be using public transport. This puts far more pressure on oil.

China is expected to nearly quadruple its fuel consumption for motor vehicles by 2030, according to the Energy information Agency, whereas in India it’ll likely rise nearly three-fold.

The USA, with its lardy population and enormous thirsty SUVs will increase 40%, but will still use twice the per car average of fuel.

It’s fortunately that these small cars tend to get good fuel economy – around 50mpg – or there would be huge pressure on oil supply (refining and distribution are the issues as much as extracting it from the ground).

It’s basic economics. If you make cars cheap (like Tata’s new $3,500 car for India), the plebeian masses can afford to drive whereas really they should be using public transport. This puts far more pressure on oil.

China is expected to nearly quadruple its fuel consumption for motor vehicles by 2030, according to the Energy information Agency, whereas in India it’ll likely rise nearly three-fold.

The USA, with its lardy population and enormous thirsty SUVs will increase 40%, but will still use twice the per car average of fuel.

It’s fortunately that these small cars tend to get good fuel economy – around 50mpg – or there would be huge pressure on oil supply (refining and distribution are the issues as much as extracting it from the ground).

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