Carazoo Indian Car Blog

Why are car companies coming to India?

The mind always wonders about progress. The huge hype about foreign car makers making a beeline to India along with well-known component makers is a progress that definitely entices a person to think of the reasons. Is it India’s greatness or another countries downfall?

In the aftermath of the US economy decline, the Bloomberg report (on climate and green house gases) stated reasons for the sudden affection of Car manufacturers towards China and India. China is one of the cheapest places for manufacturing any commodity in the world and it is also becoming the second largest car market in the world. However, China carries risks of a slow down similar to the US market recession. The already under-performing auto sector fears that if China goes down, they are doomed to see history repeat itself.

India, on the other hand, as a marketing hub can sustain decent sales figures and maintain profit margins for a long time to come. So, the progress India sees is not due to any love that the foreign market suddenly has for India, but rather fear that brings two options: Change and expand or Die a slow death.

Labels: Car market, China, Foreign cars, India

 

posted by Carazoo Blog @ Wednesday, February 20, 2008 3 Comments

India on a High – World Take Note!

I recently read a news item concerning the Australian automotive industry but what caught my attention was the Australian Manufacturing Workers Union federal secretary saying that countries like China and India have proactive policies to lure investments that encourage car manufacturers to invest in R&D, coz they know what will be the preferences of cars 10 years later in the future.

I am just as glad as an Indian that foreign countries are taking note of India as a growing economic power! Remember the time of economic recession in India? Who had thought of India becoming not just a potential car market but also a car production and export hub! India tops in every car company’s global strategic plans. The leap in the economy only spells of the good times ahead.

Article Submitted by Indian Nobody

Labels: car export, Car manufacturing, China

 

posted by Carazoo Blog @ Thursday, February 14, 2008 3 Comments

BMWs more stable market is India, not China!

It definitely rings a bell when the world’s largest luxury car maker, BMW AG found India a more stable market than China. BMWs retail sales in India accounts to a fraction of its sales in the Chinese market, but India is a definite as far as long term sales go, whereas China might soon be an oversaturated market without too much growth potential.

Small cars are already a big hit in India with foreign car makers making India their global production hub, but for a premium car maker to see great business ahead in the Indian market sounds promising - not just for the Indian economy, but also for our future lifestyle.

Labels: BMW, China, small cars

 

posted by Carazoo Blog @ Tuesday, February 05, 2008 3 Comments

Winning the Localization Game

The Boston Consulting Group (BCG) has come up with a new study, which says that the world’s leading automotive manufacturers and suppliers have been moving assets, products, and manpower to China as well as India. The move is not just to sell cars but also to set up their R&D facilities and their manufacturing and exporting hubs from these two countries.

As an Indian, I am definitely hoping that these big-wigs, when the time comes, will choose India. A move to India completely will not only increase inflow of money, but also provide millions of jobs that will improve the basic standard of living in society. However, with the Indian government at its height of corruption, there is little hope of us winning this battle. I heard one of my friends say that China is giving massive amounts of land with major facilities to whichever manufacturer wants to set up there. The only advantage we have over China is the mass of skilled working people affluent in English. Once China can bridge this gap, they will have the upper hand.

Article Submitted by EC Pandit

Labels: China, Exporting cars, Study, Submitted Article

 

posted by Carazoo Blog @ Thursday, January 31, 2008 3 Comments

Thailand to be the new hub for Tata’s small car

The much hyped Tata ‘one lakh car’ may not eventually roll out of an Indian facility. Tata Motors is planning to assemble it at its Thai plant before launching it in India. The company is also planning to create a component manufacturing hub around the plant.

Tata has submitted an application to Thailand’s Board of Investment requesting permission to invest as much as Rs. 800 Crore for the assembly plant. The proposal is likely to be considered by the Board some time next week.

With Tata looking to China for components and Thailand for labour, it remains to be seen what the company is looking for in Indian companies to contribute to this project.

Labels: Assembly, car components, China, One Lakh Car, Tata

 

posted by Carazoo Blog @ Tuesday, January 08, 2008 1 Comments

Dragon hitting the car market

China is now eyeing to cash in on India’s growing car market. At least 300 Chinese and 100 Taiwanese car component manufacturers are set to rock the Auto Expo scheduled to start in 2 days at Delhi’s Pragati Maidan. Interestingly, at the last expo held in 2006, the Dragon’s participation was limited to just 50 such companies.

Their huge participation speaks volumes about India’s growing car market. If 400 out of the 600 participating car components manufacturers are Chinese and Taiwanese, it’s time for the domestic and other foreign companies to think and bounce back on the dragon force.

Labels: Auto expo, car components, China

 

posted by Carazoo Blog @ Monday, January 07, 2008 2 Comments