Milestones matter. Targets titillate. five years ago, who would have dreamt that an indian telecom company will have 100 million subscribers. twenty years ago, who would have imagined that an indian company will report annual sales in excess of rs. one trillion. inevitably, one auto company will cross the two million mark. pawan chabra analyses the favourites & the dark horses.
Our entry level car will be the Maruti 800 and we will manufacture till the demand is there in the Indian market and till the point we can manufacture it viably.” On the other end, the other players are bullish on the segment that Maruti Suzuki has decided to ignore. Tata Motors’ Sanand plant (which will produce the ‘cheap’ Nano) will be operational by early 2010 and starting with the production capacity of about 1.5 lakh units for Nano in the first year, the company plans to stretch the capacity to five lakh units. Currently, the meagre 50,000 units of the Nano are being supplied from the Pantnagar facility. “The Sanand plant will be operational by January next year, which will have a maximum annual capacity of five lakhs. Once the plant is operational, the production of Nano will increase by many folds and once the strong demand in the Indian market is met, the plant will manufacture cars, for the European and African markets,” explains P. M. Telang, MD, Tata Motors.
Hyundai Motors India is also planning a car below Santro with an 800cc engine, which will take the volumes for the Indian subsidiary of this Chaebol to new heights. Moreover, the fact that Hyundai Motor Company is also positioning its Indian subsidiary as a global export hub for compact cars makes its chances all the more bright to reach the two-million milestone first. However, the biggest roadblock in this dream coming true for all the auto majors is the capacity constraint. Hyundai Motors India currently has an installed capacity of 6.5 lakh units and “we plan to sell around 5.5 lakh units in this calendar year but when we will reach the two-million mark is frankly out of my knowledge at the moment as it will take a lot of time from now,” candidly admits H.S. Lheem, MD, Hyundai Motors India. In fact, there are players like Ford, Toyota, Nissan and Volkswagen who are also trying to tap the Indian small car market as they have also lined up small car launches for the upcoming couple of years but it will take years more for them to be in the league of the top three giants in the Indian automotive industry.
Our entry level car will be the Maruti 800 and we will manufacture till the demand is there in the Indian market and till the point we can manufacture it viably.” On the other end, the other players are bullish on the segment that Maruti Suzuki has decided to ignore. Tata Motors’ Sanand plant (which will produce the ‘cheap’ Nano) will be operational by early 2010 and starting with the production capacity of about 1.5 lakh units for Nano in the first year, the company plans to stretch the capacity to five lakh units. Currently, the meagre 50,000 units of the Nano are being supplied from the Pantnagar facility. “The Sanand plant will be operational by January next year, which will have a maximum annual capacity of five lakhs. Once the plant is operational, the production of Nano will increase by many folds and once the strong demand in the Indian market is met, the plant will manufacture cars, for the European and African markets,” explains P. M. Telang, MD, Tata Motors.
Hyundai Motors India is also planning a car below Santro with an 800cc engine, which will take the volumes for the Indian subsidiary of this Chaebol to new heights. Moreover, the fact that Hyundai Motor Company is also positioning its Indian subsidiary as a global export hub for compact cars makes its chances all the more bright to reach the two-million milestone first. However, the biggest roadblock in this dream coming true for all the auto majors is the capacity constraint. Hyundai Motors India currently has an installed capacity of 6.5 lakh units and “we plan to sell around 5.5 lakh units in this calendar year but when we will reach the two-million mark is frankly out of my knowledge at the moment as it will take a lot of time from now,” candidly admits H.S. Lheem, MD, Hyundai Motors India. In fact, there are players like Ford, Toyota, Nissan and Volkswagen who are also trying to tap the Indian small car market as they have also lined up small car launches for the upcoming couple of years but it will take years more for them to be in the league of the top three giants in the Indian automotive industry.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human FaceProf. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
