Dude… Here’s My Car!

ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...

It’s zippy times ahead for India’s automotive bevy, and with really good reason…

This special feature edition of 4Ps Business & Marketing is one I hold especially dear to my heart (being the automobile aficionado that I am), and so while I’m sure you’ve enjoyed reading our refreshing analysis of the hot wheeling auto brands driving the nation crazy – and quite literally – it’s only appropriate to sneak a glance at the bigger outlook that India’s radiant automotive industry presents in the new millennium.

The slew of cars launched since the beginning of the current year itself simply reiterates a tale that needs scant telling in the new-age socio-economic dynamics of our country: unprecedented levels of consumer purchasing power clubbed with the allure of convenient financing options and reasonable prices, a vibrant economic environment and a mind-boggling smorgasbord of product choices for both individuals and organizations have all translated into the Indian automotive sector’s emergence as among the most swiftly progressive in the manufacturing segment. And on this occasion, the statistics indeed narrate the story: In the passenger vehicle genre, the Society of Indian Automobile Manufacturers (SIAM) estimates the cumulative growth during the period April-February 2007 compared to the corresponding period last year at a formidable 22.91%, while that of passenger cars in the same duration stands at an impressive 24.76%. In fact, the last one month alone saw passenger car makers enjoy a growth figure of a striking 16.36%. Voila… it’s small surprise then (and much to the rue of road infrastructure authorities, I suspect) that the year 2007 is poised to witness the arrival of nearly 20 new cars, including variants, a historic happenstance in its own right!

Meanwhile, consider the development in the other domains of the industry, and the coup stands complete. Blazing degrees of advancement in the commercial vehicles category, two wheeler and three-wheeler production, combined with a steady augmentation in export capability of both auto components and assembled vehicles have resulted in India becoming internationally the second most significant two-wheeler industry, the fourth biggest commercial vehicle territory and the eleventh hugest passenger car market, with leading US-based consultancy Keystone projecting us to transform into the world’s third largest automobile market by 2030, only trailing China and the United States.

Again, not entirely astonishing, when one views the figures: SIAM deduced aggregate automobile exports to have spiraled by 25.4% during the last fiscal, with total passenger vehicles accounting for 13%, total commercial vehicles at 22.57%, total two wheelers at 20.65%, and three wheelers accruing a whopping 87.16%! We’re no strangers to the Indian auto component manufacturers’ success saga either, which merits special mention. With an inherent cost advantage when it comes to steel and its auxiliaries, and more vitally, the qualitative capability to deliver comprehensive auto part outsourcing solutions encompassing critical components being serviced to the likes of global original equipment manufacturer (OEM) behemoths like Volvo, Ford, Renault, DaimlerChrysler, Fiat, General Motors to name a few. The Indian auto component industry, currently worth $15 billion is predicted to almost triple at a whopping $40 billion by 2016, as per the Auto Component Manufacturers’ Association (ACMA). More power to Bharat Forge, Wheels India, Sundaram Fasteners, AK Minda, Amtek Auto and the others spearheading this gigantic revolution…

Clearly, the Indian automotive industry is geared for greater glory. Poised to play the role of an even larger determinant of the country’s economic productivity, the promise it harbours in a wider perspective is remarkable; that of creating nearly 25 million jobs in the next decade as anticipated by the Government in its ambitious Automotive Mission Plan 2016. The horizontal and vertical industry connections the very nature of this sector endows it with, makes it a pivotal multiplier of wealth across the spectrum of manufacturing, service & technology, and consequently a perennial focus arena for progress. So, even as car lovers and producers might presently feel the pinch of hiked interest rates, there’s no denying the fact that the wheels are all set to spin into an overdrive like never before!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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