A month ago, Tata Motors announced they would be entering two vehicles in the Automotive X Prize. The company's involvement with the 100 mpge challenge has now deepened as Ratan Tata, the Chairman of Tata Sons (which owns Tata Motors, the maker of the Tata Nano, among other companies) has become a member of the X Prize Foundation's Board of Trustees. The President of BT Americas, Michael Boustridge, also joined the Board. The Board and the X Prize Foundation are in charge of more than just the Progressive Automotive X Prize, as the X Prize's "Revolution through Competition" model is also trying to find new ways to get back to the moon among other endeavors. Bios of both new Board members are available after the break.

We told you there are concerns Tata Motor's Nano will drive up oil prices. What does Tata chairman Ratan Tata think about this? In the first video below the fold, Ratan laughs it off. We told you Sir Mark Moody-Stuart, former Shell chairman said low MPG cars should be banned. Want to see Mark say that in his Prius? Check out the second video below the fold. We told Mitt Romney said he supported the Governator's right to get a waiver ... then Mitt took it back. Want to see Mitt's first position on the waiver? You can probably guess it's in the third video below the fold.

[Source: YouTube]

In the video above, Ratan Tata, chairman of the Tata Motors, responds to critics who say the Nano is not safe and pollutes. Here's what he said yesterday:

Let me assure you and also assure our critics that the car we have designed and that we will be presenting to you today will indeed meet all the current safety requirements of a modern day car. Of late, when it became known that we will in fact be making such a car, the attention has moved to questioning the pollution it would create. Let me again assure those who have concerns for the environment, that the car we present you today will meet all current legislated emission criteria and will have a lower pollution level than even a two-wheeler being manufactured in India today.

Concerns are also now being expressed about the congestion that could be caused by the existence of our small car in large numbers. I believe this needs to be put in the right perspective. There is no doubt that India is woefully behind its neighbors in infrastructure. The government is now endeavoring to address this situation with its new road policy. Looking ahead, five years from today, were we to produce and sell 500,000 small cars every year, we would then, at the end of five years, constitute approximately 2.5 percent of all passenger vehicles in the country. This could hardly be considered the nightmare of congestion that is being raised today about our new small car.

Below the fold is another video where Ratan explains that he made the Nano because of unsafe driving on scooters by families. Also below the fold is a video where Ratan says the Nano will indeed retail for 1-lakh because "a promise is a promise." What do you think, readers? I have to admit, I still have doubts but I'm really impressed and excited with what he says.

Related:

• Here's the $2,500 Tata Nano, the Indian peoples car
• VIDEO: Live reveal of the $2,500 Tata Nano
• The World chimes in on the Tata Nano

[Source: YouTube]

Tata's Rs1-lakh will debut at the Delhi's Auto Expo, which starts January 10th. The Rs1-lakh will also be at the Geneva Motor Show this March. Tata group chairman Ratan says Tata won't make a hybrid Rs1-lakh (also known as the people's car) because it would be too expensive. The Rs 1-lakh will be the cheapest car in the world and he won't make a hybrid because of the cost? I hope Ratan understands the real reason Rs 1-lakh will be a hit: it's not the low cost but the car's green credentials. Let me explain.

5 minutes and 30 seconds into the video above Ratan Tata is asked about the several thousand dollar car. He says he thinks a cheap car could be done because he already makes a car for $4,000. So, this begs the question, is a $2,500 car really anything new? Below the fold is a video of Top Gear test driving the cheapest cars you can buy today. It includes economy cars from Kia and Hyundai that you can pick up for just over $10,000. The Kia and Hyundai cost much less to make but the $10,000 mark is crossed once you take into account (as Jeremy explains in the second video below the fold) the added costs of shipping, taxes, middle men, etc etc etc.

If the Rs1-lakh comes to the states, I expect it would be priced, at best, several thousand dollars below the $10,000 mark set by Kia and Hyundai. Breaking the $10,000 price ceiling for a car will be an achievement but by itself, I don't think price will be the game changer everyone imagines. You still have to pay for insurance, fuel costs, repairs, parking, etc and lets not forget something that Top Gear reminds us of in the videos below: economy cars really, really, really suck. Just because the Korean car makers are getting a little competition from India and prices might fall won't make people suddenly like economy cars.

Go below the fold to read why Rs 1-lakh is a game changer.

[Source: Google video, Economic Times, Business Standard, YouTube, Yahoo Autos]