Innovation is creeping in the car industry as car manufacturers are trying to hunt for cost efficiencies. This seems to be a worse period for the car industry when global recession has bang the Motown.
Shockingly, car manufacturers are struggling to drive hard bargains with commodity vendors and find interesting ideas for tightening the belt.
Talking about Honda, the company is looking to squeeze operational efficiency and cut down the use of electricity to skim cost. Interestingly, Honda is also growing creepers on the rooftops to reduce the dependence on AC. This is just an initiative; the company is still trying further to help meet the required cost rduction.
After Honda, Tata Motors is also trying to cut down cost by replacing expensive car components with cheap and affordable alternatives. Even Maruti is making a greener move and trying to make its car parts recyclable.
In a similar manner if all the car manufacturers are on the verge of meeting the required cost efficiencies, then cars of the future are definitely going to be cheaper.
Labels: Car-Industry, Car-Manufacturers, Tata-Motors
6 Comments:
Yes, even I heard that car manufacturers are struggling hard to beat the recession by reducing the car prices. Obviously, with the current cost of production its not at possible, they have plans to replace expensive car components with cheaper ones. If they are successful in reducing the cost of production, car prices will definitely go down.
it is difficult to believe that car are going cheaper that too during global crisis.But using low quality components...wouldn't they affect the quality and performance of the car?
Cost cutting is a word nowadays, A almost dead market is what has driven down town this scenario. May be its the time of Cost efficient cars the customers will be looking for .. Even they too need to save their wallet from getting burned.
Shikha, I don’t think that reducing car prces by replacing expensive car parts is a wise decision. Manufacturers are working hard to bring in new technologies and make their cars more advanced and safe. Under these circumstances, if they replace expensive car parts with cheaper parts wont that affect the car and passenger safety.
No, this won’t affect safety at all. Car manufacturers are in regular hunt of ways and measures that can help them reduce their input cost without any compromise on performance, safety, and driving comfort.
Car Industry is truly hit hard by the economic crisis. Hope the cost cutting process will help till the
recession gets over. Government should in this time do their part to help the industry.
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