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Old 16th December 2009, 10:31   #1
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Default A Discussion: Indian vs Foreign Car Manufacturers

Today majority of car manufacturers across the globe have one or more models in India. Many of them have plants as well. Most of us own Japanies/ German/ Korean engineering.
Indians are great in engineering, I wonder why we just have one vendor TATA who is keen on manufacturing car keeping Indian requirments. Most of other companies are localising their product to sell in India.

Yes we have Amby as another car for India, but there are no hopes that they will do more than that. Bajaj is interested to manufacture cars but not with own technology. M&M tried with Renault but not with own technology. Can we see any other vendor here? Any thoughts?
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Old 16th December 2009, 10:41   #2
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How about Mahindra?
They are here too.
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Old 16th December 2009, 11:23   #3
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Originally Posted by mrkanitkar View Post
Today majority of car manufacturers across the globe have one or more models in India. Many of them have plants as well. Most of us own Japanies/ German/ Korean engineering.
Indians are great in engineering, I wonder why we just have one vendor TATA who is keen on manufacturing car keeping Indian requirments. Most of other companies are localising their product to sell in India.

Yes we have Amby as another car for India, but there are no hopes that they will do more than that. Bajaj is interested to manufacture cars but not with own technology. M&M tried with Renault but not with own technology. Can we see any other vendor here? Any thoughts?
The Japanies, Germans, Americans have got decades of experience and they have evolved in quality, design, production, etc through these experiences. Indian manufacturers on the other hand have very less experience in cars. You either collaborate with these experience rich companies or you learn the hard way buy going through the evolution process again. The later does not seem a viable option. Hence you find Indian companies collaborating with foreign companies and en cashing on their experiences rather than losing and eventually dieing out in the healthy competition by going all by themselves
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Old 16th December 2009, 11:49   #4
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Originally Posted by beejay View Post
How about Mahindra?
They are here too.
They are with Renault also.

Others have hundreds of years experience, that's why no Indian company daring to venture in this business.

Since TATA was producing Trucks, buses that's why it was easier for them to switch to car front.
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Old 16th December 2009, 12:04   #5
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Just to corroborate ranjitss view, it has taken years for the established manufacturers to evolve with a technology and it might not be a easy for a newbie to jump into the competetion. As far as i know TATA is not really on its own in terms of developing the designs of the cars, i think a significant portion of its effort comes from some italian consulting firm and also from FIAT. I feel it takes tremendous effort to gain volume in terms of numbers internationally. TATA might be a real contender in Indian market but they have no place in global map.
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Old 16th December 2009, 12:09   #6
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Even TATA manufactured trucks with Benz and later point of time due to government rules it broke the deal.
It's good to be with an experienced player than starting of own which involves huge risk.
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Old 16th December 2009, 12:53   #7
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And while we are here, lets remember our Maini and Sonalika.

Even they started out on their own and eventually found good partners to work with.
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Old 16th December 2009, 12:56   #8
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It isn't easy putting a car together. Even after 10 years of producing passenger cars with 3 revamps, Tata's quality is being pointed out by us!
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Old 16th December 2009, 13:08   #9
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Exclamation History of automobiles

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Originally Posted by akas_chauhan View Post
...Others have hundreds of years experience, that's why no Indian company daring to venture in this business.....
Hundreds of years ?

Well, most of the older (ice-based) automobile companies have a history dating back to the late 19th century (1880-) or early 20th century (1902-), so the maximum years of experience possible would be 100-115 years.

Last edited by Blue Thunder : 16th December 2009 at 13:09.
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Old 16th December 2009, 13:29   #10
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Hundreds of years ?
Well it starts off with Toyota inventing the wheel, Mercedes making the first bullock cart and so on :P
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Old 16th December 2009, 13:37   #11
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Tata, Mahindra, Maini and Sonalika have wide range of products. Most products from Tata and Mahindra sell in very good volumes.
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Old 16th December 2009, 13:38   #12
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I have two observations to share

Every country which has own Automobile Competence, has only one or two companies focusing on the market viz. US (Ford, GM), Germany (VW, BMW, Benz), Italy (FIAT), France (Renault), Japan (Toyota, Honda, Nissan), Korea (Hyindai, Daewoo), China (BYD, ), India (Tata, M&M)

Automotive Business is Heavy Investment, Technology Focussed, High Customer Centric, Highly Regulated, Labour-Automation Centric, Low (er) margin business. Modern Indian enterprises are more comfortable with Low investment, Low risk, Monopolistic, High margin businesses

Hence we are not seeing too many Indian companies investing in Automobile Sector.

Last edited by StarVegabond : 16th December 2009 at 13:40.
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Old 16th December 2009, 14:20   #13
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I understand that, some part (design etc) may come from some other company but TATA owns it end to end. We are not independent on automobiles like other contries, i.e. tomorrow if some thing changed in political system or economy, we will be forced to face unexpected things, e.g. the other brands may not able to supply some spareparts.
I am not saying we need to reinvent the basics and also we don't need 100-120 yrs even if we do it again from basic. If someone follow great process & vision can make it in just few years. Sonata, M&M are not in passenger cars segment. M&M has only one car & that's all from Renault.
Apart from TATA, we need some Indian company in auto.
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Old 16th December 2009, 20:02   #14
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In west, it started with the Industrial revolution. That was the time when solid foundations in industrial research were laid. This was slowly coupled with stringent law and its implementation leading to better and safer vehicles. In the East, other than than the Japs and Koreans, no one else has shown the willingness for R&D till late 1900s. Almost a century of lack of knowledge base.

One good thing that has happened is due to the immense technical pool with India and China. Although this hasn't brought the revolution, it has brought the manufacturing processes at par. However, the lack of stringent laws and their application in the auto sector is still keeping the rate of evolution pretty very slow, which, I feel, is good in a way.

As far as the topic in question, I feel technical competence of Indian manufacturers can't be questioned, even though it may be doing a piggy back. What will bring about true evolution is law enforcement and infrastructure development. So, till that happens, we are going to see only the second rung products being brought to India. The bar will be raised every now and then, but true world leading product launches may happen only in distant future.

Last edited by NutsNBolts : 16th December 2009 at 20:04.
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Old 16th December 2009, 20:41   #15
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Quote:
Originally Posted by mrkanitkar View Post
We are not independent on automobiles like other contries, i.e. tomorrow if some thing changed in political system or economy, we will be forced to face unexpected things, e.g. the other brands may not able to supply some spareparts.




Generally every government invests to build capabilities in the areas considered critical or strategic. Indian Government is investing in

Food / Agriculture

Defense /Military Equipment (DRDO, BEL, Ammunition factories etc)

Avionics (HAL)

Space (ISRO, Cryogenics)

Navy (building Submarines, Aircraft carriers etc)

Energy (Coal, Thermal, Hydro, Neuclear)

Oil & Gas (Exploration, refinement, distribution)

Natural Resources (Mining, Water Management, Enviornment, Forest etc)

There are more areas,


Fortunately or Unfortunately, Indian Government Babus have not thought about Automobiles being Strategic.

Private sector only focuses on ease of doing that business and or the fat margins. Unfortunately Automobiles does not belong to easy business category.
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