Made in India
There are about 65 million scooter owners in India. Families are forced to pile onto scooters, or make several trips to commute. Clearly, this is not an ideal form of transportation for most people. However, the low income in India has prohibited individuals from purchasing a vehicle than can cost more than $10,000. Is India’s Tata Motors new four-door, four-seat, rear-engine car for $2,500 a good alternative plan for transportation in India?
In an article, "No, No, No, Don’t Follow Us," Thomas L. Friedman, who became the New York Times foreign affairs columnist in 1995, reporting on international issues like the Middle East conflict, U.S. domestic politics and foreign policy, and international economics, claims that this $2,500 Tata Motors car is not a good alternative because India’s infrastructure cannot handle the added traffic or pollution that these vehicles will cause. After receiving a degree in Mediterranean studies and a master's degree in modern Middle East studies, he began writing for The New York Times in 1981 (“Columnist Biography: Thomas L. Friedman”). Currently, Friedman writes the foreign affairs column twice a week for the New York Times. In his Op-ed article “No, No, No, Don’t Follow Us,” he stated that the inexpensive Tata Motors car would not be good for India. However, because it will improve India’s economy, help them advance in the manufacturing industry, and provide reliable, cost-efficient transportation to consumers, this $2,500 Tata Motors People’s Car is a good alternative to India’s current modes of transportation.
Everyone wants to live the envied “American lifestyle,” a lifestyle that is advanced and fast paced. India is currently trying to deliver part of the American lifestyle to their citizens at a lower cost. Car companies worldwide are coming up with new ways to develop and build automobiles and they are starting to rely on India to help them. India needed small, low-cost cars with four doors and room for the family, the People’s Car was developed by Tata Motors to fill this need. A.T. Kearney, an international management consulting firm, believes that these cheap cars could potentially be purchased by 300 million in India by 2020. CSM Worldwide, an auto industry forecasting service, adds that India will overtake China next year as the fastest-growing car market (Timmons).
In the article, “No, No, No, Don’t Follow Us,” Friedman says that there is already a strain on India’s infrastructure and the $2,500 car will only add to it.
Picciotto, Dan and Nishit K Madlani. "The Global Auto Industry Shifts Its Focus To OVerseas And Emerging Markets." Credit Week (2013): 26. Online. 21 May 2014. .
In a capitalistic country with a free market, foreign competition is expected. This is no exception for the automobile industry where America competes with its various rivals. Competition from elsewhere encompasses that from Italy, Germany, and of course, the renowned Japan. The Japanese vehicle industry is especially competitive; according to the Automotive News Data Center, five out of the ten best selling vehicles of the year are Japanese vehicles. This data applies to the U.S. market over the first 9 months of the year. Expectedly, the automobile industry is an important and significant market. Motor vehicles are a major form of transportation as many people in the U.S. own at least one car.
Over time, there have been several technological advancements that have shaped the world in which we live and are familiar with today, and one advancement, in particular, that has influenced American society significantly is the automobile. Since the automobile’s beginning, it has continuously been improved and modified pushing the rest of technology to keep up with its rapid pace of innovation. Americans have frequently taken advantage of the automobile’s many benefits, but what they often fail to realize is that the automobile has given American society more than just the luxury of driving. In fact, the automobile has influenced this nation and the people within it both historically and culturally
The years 2008-09 and 2012-13 were years of global economic crisis and the same is visible in the sales figures. Further, the FY 2013-14 too has not been a great year, especially for passenger segment. During the first two months of 2013-14, the domestic Passenger Vehicle (PV) industry volumes declined by 8.6% year on year, continuing with the trend in negative growth started in fourth quarter 2012-13. While all PV segments experienced weakness in demand in April-May 2013, the biggest contribution to the fall in volumes was from Micro-Car segment & Compact-Car segment. More so, SIAM had to revise its sales forecast many times for the FY13. It had initially predic...
It is unfortunate that the U.S. chose to use automobiles as its wedge to open
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
Tata motors is very popular brand in India by it’s commercial vehicle and as well as known for low budget car with high fuel efficiency. For example Tata introduce Indica eV2.this car known for low budget and as well as fuel efficient.
In Asia, China and India have been the top two of the favourite markets for foreign car makers. Both these markets offer a lot of variety in terms of ample number customers belonging to all conceivable economic classes of society. This provides a lot of scope for whichever type of car model you launch in these two markets. China and India will be the big engines for growth, Schoch said. Ford sees China industry sales hitting 32 million vehicles in 2020, up from 23 million in 2013, and doubling to 6 million in India in the same period.
India’s automobile industry is one of the key drivers that promote the economic growth of the country. Personal vehicle ownership in India is increasing at a fast pace as a result of rapid economic growth witnessed in the last two decades. The rise in disposable income (in both rural and urban sector), presence of a wide variety of options to choose from and availability of easy finance are the main drivers of automobile sales in India. The relative popularity of the various segments of vehicles based on their size, price and usage are also undergoing sea changes. Especially in a country like India where motorized and non-motorized informal transports are a major mode of travelling (along with public transport in bigger cities), a fast-paced shift towards private motorized transport is a substantial change. The post globalization period has witnessed the footprints of global automobile majors striding towards India to tap India’s highly potential vehicle market. With manufacturers fighting to capture the biggest slice of the pie in one of the fastest growing automotive markets in the world, the Indian consumer is being offered with extravagantly larger set of vehicles in
Government of India aims to make automobiles manufacturing the main driver of ‘Make in India’ initiative, as it expects passenger vehicles market to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP)
Tata motors’ small commercial vehicles portfolio with products at various reasonable price points was deemed fit for semi urban and rural markets by the company’s executives. Yet, the market for the SCV’s in the hinterlands of the country was not growing as expected. In 2010, TML launched a Project, Neev (literally means Foundation in Sanskrit) with the aim of gaining a first mover advantage in rural markets.
The Indian car business sector can be partitioned into a few fragments viz., two-wheelers (bikes, geared and ungeared bikes and mopeds), three wheelers, commercial vehicles (light, medium and overwhelming), passenger autos, utility vehicles (UVs) and tractors. India is rising as one of the world's quickest developing passenger auto markets and second biggest two wheeler manufacturer. It is home for the biggest engine cycle manufacturer and fifth biggest commercial vehicle manufacturer. The business is delivering around 1.3million passenger vehicles, 0.4 million commercial vehicles, 7.6 million two wheelers and around 0.3 million tractors for each annum. The Automobile business has accomplished a turnover of US $ 28 billion and the auto part industry has come to a turnover of US $ 10 billion. It contributes 4.7% to India's GDP and 19 % to India's indirect tax revenue. In spite of high entry barriers, for example, capital necessity, innovation and brand value, rivalry is genuinely serious because of the presence of financially and actually solid players. In spite of its Japanese origin, consumers view Maruti Suzuki as an Indian brand, less modern than different brands however unmistakably situated as offering reasonable and fuel-productive autos. Like Maruti Suzuki, Tata additionally is seen as a brand primarily
India still has a very low 4-wheelar penetration which is a great opportunity for automobiles players. Maruti has committed itself to motorize India by offering value for money products and product lines for each segment of the population.
The following reasons have contributed to this increasing share of scooters and why we believe they will continue to grow much faster ahead:
The fast population growth rate of humans means that the necessity for transportation vehicles is also enormously increasing. Studies have shown that in 1999 the worldwide number of vehicles registered was 700 million. From this huge number of vehicles, the US has a large share, which includes 200 million cars and light trucks. The number of cars worldwide also grew three times faster