Another reason...

We may be underestimating oil demand from developing nations. Consider if poor families around the globe could become gasoline consumers at a fraction of the cost it now takes to buy a car.


Behold, the $2500 car.

The cabin of the car seats four people--"comfortably," the company says, "with generous leg space and head room." The four-door (plus tail gate) car is taller than it is wide: 1.6 meters tall by 1.5 meters across. From front to back, it measures 3.1 meters.

The car has a two-cylinder, 623-cc fuel-injection engine. Tata says that this marks the first time that a two-cylinder gas engine is being used in a car with a single balancer shaft. The model pictured here is the standard version.

Before you scoff and start making Yugo jokes, consider that Tata just bought Jaguar and Land Rover from Ford. This is one ginormous company that will be a power in the US before long.

But before that, they will make millions of new customers for oil who are enjoying rising incomes and even-faster rising expectations.