India hasn’t really arrived as an automotive hub as recent data seems to suggest; but it cannot be denied that the country is staring at quite a few phenomenal opportunities, analyses virat bahri of B&E
Being overawed by, and often envious of most things Chinese seems to come naturally to us Indians; be it with respect to their economic growth, their military might, their influence in major world forums, their manufacturing prowess, their infrastructure development or even their Olympic games! Though the competition is largely one sided, Indians surely do look for every possible reason to believe that they can outclass the dragon. Well, they got one recently, from the automotive sector that is, when data was released for automotive exports for the period of January-July 2009, where India managed to actually overtake China in terms of automotive export figures. India’s total exports grew by 18% yoy to reach nearly 2,29,809 units; while China’s exports actually declined by 60% yoy to reach around 1,64,800 units. Even South Korea and Thailand witnessed significant declines in their export numbers by 43% and 31% respectively (yoy).
Remember, the automotive industry is a key indicator of the manufacturing prowess of a country. So is the world finally recognising India’s manufacturing credentials?
Unfortunately, all the mindless media hype surrounding this ‘achievement’ tends to overshadow the true picture. India has actually become recognised as a car exporter more by default rather than by design. In fact, India only exported commercial vehicles mostly to the Middle East and Africa before Hyundai came into the picture, as Ashvin Chotai, Managing Director, Intelligence Automotive Asia, agrees, “The major boost to exports started after Hyundai made India the global hub for the production of its small cars. The main destination for Hyundai is Europe and hence this lifted the status of India as a serious exporter of cars to developed markets.”
Further, the export data needs to be analysed in perspective. Around 2,01,000 of these exported units belong to the passenger car segment. And exports in the passenger car segment are dominated largely by two players – Hyundai and Maruti.
Being overawed by, and often envious of most things Chinese seems to come naturally to us Indians; be it with respect to their economic growth, their military might, their influence in major world forums, their manufacturing prowess, their infrastructure development or even their Olympic games! Though the competition is largely one sided, Indians surely do look for every possible reason to believe that they can outclass the dragon. Well, they got one recently, from the automotive sector that is, when data was released for automotive exports for the period of January-July 2009, where India managed to actually overtake China in terms of automotive export figures. India’s total exports grew by 18% yoy to reach nearly 2,29,809 units; while China’s exports actually declined by 60% yoy to reach around 1,64,800 units. Even South Korea and Thailand witnessed significant declines in their export numbers by 43% and 31% respectively (yoy).
Remember, the automotive industry is a key indicator of the manufacturing prowess of a country. So is the world finally recognising India’s manufacturing credentials?
Unfortunately, all the mindless media hype surrounding this ‘achievement’ tends to overshadow the true picture. India has actually become recognised as a car exporter more by default rather than by design. In fact, India only exported commercial vehicles mostly to the Middle East and Africa before Hyundai came into the picture, as Ashvin Chotai, Managing Director, Intelligence Automotive Asia, agrees, “The major boost to exports started after Hyundai made India the global hub for the production of its small cars. The main destination for Hyundai is Europe and hence this lifted the status of India as a serious exporter of cars to developed markets.”
Further, the export data needs to be analysed in perspective. Around 2,01,000 of these exported units belong to the passenger car segment. And exports in the passenger car segment are dominated largely by two players – Hyundai and Maruti.
Source : IIPM Editorial, 2012. An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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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 Face
