It looks like the high oil price hasn’t deterred the ever-wealthier Chinese from buying cars.
At the mean time, Tata Motors has rolled out Nano – the world’s cheapest car. It plans to sell 250,000 units of Nano this year. Five years later the production will rise to 5 million units per annum.
Demand for oil will remain high. Expect the oil price to hit US$170 per barrel.