A tale of two Vehicles: the Jaguar and the Jugaad

This recent NYTimes op-ed highlights the ingenious Jugaad, a familiar sight in rural India:

(Click to enlarge)

... Then there is the jugaad (pronounced jew-gaar), which is nothing like a Jaguar.

It is, for one thing, illegal: a truck tossed together, saladlike, in the sheds of northern India, beyond regulators’ view. Parts from old jeeps are cut and welded and combined with wooden planks to form a chassis. An engine commonly used for irrigation pumps is attached.
Actual bells and whistles may be added as adornments, and the wheels are painted by hand.

The truck gives India’s village dwellers a cheap ride: 10 cents for a half-hour journey with a few dozen others. So compelling is their business logic that jugaads have become popular in dowries.

The truck may be obscure, but the culture behind it is now a management fad. Jugaad, not as noun but as verb, is suddenly the talk of consulting firms like McKinsey and companies like Best Buy in the United States.

The slang Hindi verb “jugaad,” as translated for managers, means to make something much like a jugaad. It is to be innovative despite scarcity — a winning formula for hard economic times. Management gurus cite India’s ultra-low-cost creations as inspiration: the $800 electrocardiogram, the $24 water filter, the $2,500 car, the $100 electricity inverter, the $12 solar lamp.

But these represent only a sliver of what jugaad is. It is more than frugal innovation; jugaad is a way of life, here as elsewhere, that has anticipated important movements of the 21st century, from open-source technology to cultural fusion. From years of observation in India, some core tenets emerge, many of use beyond the business world.

FATALISTIC CREATIVITY: India is not an easy place, and to be fatalistically creative is to transcend its hardships. It is to chafe daily against the way things run; to resist the idealistic temptation to change all that; and to strive instead for success and solutions within the constraints.

... MARKET HUMANISM: Jugaad, as a truck and a way of life, involves a capitalism different from the market philosophy that informs the West — and one that prefigured the interesting new directions that capitalism is taking today.

... ANYONE SOURCING: The black-and-yellow Mumbai taxi, an exemplar of jugaad, was crowd-sourced before Wikipedia and open source before Firefox.

... BOTH-AND TRUTHS: A.K. Ramanujan, the late Indian folklorist, once asked whether there was a specially Indian way of thinking. His conclusion was that Westerners were more comfortable with truths applied universally to every case, while Indians resisted the universal, preferring situation-specific solutions. This is philosophical jugaad: an approach to human dilemmas that rejects the either-or.

The Jeepney and the Tuk-tuk

The jeepney and the tuk-tuk are popular modes of (low-cost public) transport in the Philippines and Thailand respectively. In both cases the open air design is a double-edged sword: the outside breeze alleviates the tropical heat, but you're also exposed to smog and dust. Air-conditioning is out of the question, unless you want more expensive alternatives like a cab or bus. More recently, there are a few fully electric jeepneys ("E-jeepney") plying the streets of Manila.

The tuk-tuk has equivalents in many developing countries, and is generically referred to as the auto rickshaw. In the Philippines there is a slight variation ("tricycles") where passengers are in a cabin adjacent to the driver.




For the uninitiated, here is a funny how-to guide for riding jeepneys in the Philippines:

The Mahindra Gio

While the Nano low-cost compact sedan justifiably gets a lot of press, the less well-known Mahindra Gio, a new compact truck from India, is just as impressive. The price and features makes it an affordable option for budding entrepreneurs in the developing world. I hope the product is successful enough that we start seeing similar products from other companies.


Here are a few factoids about it:

1. At a starting price is about $$3,525, it can handle a payload of up to 1,100-pounds in its 5-foot cargo box; fuel consumption is about 64 mpg.

2. It uses a 2-cylinder diesel engine manufactured by Kohler.

3. The engine is mounted in the rear, below the cargo box.

Keeping the engine in the rear ensures a lower noise level inside the cabin and moreover the heat from the engine does not enter the cabin. Thereby keeping your cabin cooler, and more comfortable even in hot weather.