In southwestern Ontario the second week in January represents a few things. You can make an argument it gets everybody back to school, back to work, back to normal. It also represents the week when people get ready to go to the North American International Auto Show.

For car buffs, this is almost better than sex. Maybe that’s why I never get it. I have one friend who loves to go. We’re best friends so we got to quite a few places together. We share similar interests, one of which is basketball. We’ve spent many a moment together watching the Detroit Pistons. Nonetheless, he knows better than to invite me to the Detroit Auto Show. After inviting me a few years ago, I think he figured out I’ll never understand why people salivate about outrageously expensive machines which get you from A to B.

However, I don’t want to spoil everybody’s fun, so I play along the best I can. You might remember my sojourn back into the auto showrooms last winter in my attempt to buy a new truck after 23 years of the old one. I was definitely a stranger in there. However, I read with interest about Indian automaker Tata’s announcement regarding their $2500 Tata Nano car. It’s dubbed a car for emerging markets, targeted at people wanting transportation, but cannot afford some of the expensive choices North American and Japanese carmakers manufacture.

When I heard of this I knew almost exactly what Tata was getting at. On my travels in Bangladesh I was always taken by the Tata trucks and buses, which seemed to be on every street corner or country road. Made in India, it seemed natural to be on the road in Bangladesh. Along with them where lots of Japanese cars, imported used from other Asian markets. It was a great example of filling a market with vehicles, which match market conditions.

Those market conditions are similar in many other developing countries. Incomes are rising and the people are demanding better transportation. Filling that gap with Tata Nanos seems a natural. The car has a two-cylinder 623cc all aluminum engine. I can see this car being bought up all over India and the rest of the sub-continent.

Of course the question I have is when it is coming here? I don’t know. Clearly though the spectre of cheaper Asian cars from India and China coming into the United States is on the horizon. For instance this year at the North American International Auto Show four Chinese automakers have displays. According to the Globe and Mail a Chinese company called Geely will have eight vehicles at the show and another company Changfeng has four more, two of which are SUVs. Two companies plan on selling cars in Canada starting in 2009. The following is a direct quote describing some of this activity from CBC.ca

“Geely and the China America Co-operative Automotive Inc. (Chamco) importers said they plan to sell vehicles in Canada in 2009. Chamco said it is planning to sell 15,000. On offer will be a pickup truck and an SUV. Prices will start at about $13,500, company officials said.” (CBC News CBC.ca)

Ok, is that the first example of a new wave of Asian imports, which will cut the underpinnings of the North American auto sector? Or will the Chinese simply find North American religion and raise the price of their cars to satisfy what I believe is this warped North American car market where people mortgage their future to buy these cars? Or will it work well, everybody agreeing with each other including the UAW and the CAW? Fat chance. You can bet any upswing in Chinese car imports into this country will cause widespread gnashing of teeth in North American showrooms and factory floors.

Nonetheless it’s coming. I’m sure I’ll see Chinese cars on our roads this year and for sure next year. Someday I might even see one of those Tata Nanos whizzing by. Sometimes here in North American we think we are the centre of the universe especially when it comes to cars. However, that’s not the case anymore, especially with Asian countries having rampant economic growth. As their incomes rise, they will have more cars and as that cycle continues they invariably will look to import them into the lucrative North American car market.

How this will play out in terms of numbers in the next few years I don’t know. However, its pretty obvious to me the car market is changing and we’re going to have to change with it. We’ll need to get used to new cars from China and maybe a Tata Nano or two from India. Don’t be surprised. Our global economy is changing. A few strange new cars will only be an example of that.