Green woes greets India's new "People's Car"

By Jonathan Allen

NEW DELHI (Reuters) - India's "People's Car" has yet to be unveiled and the advertising campaign has not even begun, but some Indians are already raving about Tata Motor's new $2,500 car -- despite the fears of environmentalists.

"I am really excited and definitely buying the cheapest car in the world as soon as they launch it," said Arindam Sapui, a rice trader in Burdwan, a small town in West Bengal in eastern India.

This is exactly the kind of unbridled enthusiasm that environmentalists have been dreading as they predict a plague of ever-cheaper cars and ever-swelling clouds of climate-changing fumes.

Tata will unveil its 100,000 rupee car on Thursday.

Selling for less than half price of the current cheapest car in the market, it hopes it will tap into the growing ranks of India's middle class -- rather like the Volkswagen Beetle did in Germany or the Mini in England.

Sapui currently zips between villages for work on a scooter, and was thinking about upgrading to a more powerful motorbike.

"But my wife said the 1-lakh car would be cheaper and much safer," he said, using the word for 100,000 in the Indian counting system.

Several more-established middle class consumers who already owned one car also said it would make for an affordable second car for a spouse, son or daughter.