The global automobile industry is undergoing dramatic change in recent times. There has been enormous consolidation, both amongst vehicle manufacturers and component vendors to achieve economies of scale product synergies and strong and presence. By contrast, there has been little or no consolidation in either the vehicles or the components area in India. Size remains small by International standards and therefore economies of scale (large scale) cannot be attained in India for the present. The Automobile Industry in India since its inception in 1948 has faced several constraints and problems, but has resolutely bounced back to merge with growth in Indian Economy. The Industry showed a growth rate of 20% in the period from 1993-96 and thereafter from 1996, there has been a slow down in growth rate. This aggravated further in 1997-98. There has been, in the period from March 1998 to March 99 an overall growth rate of 2%. The multi utility segment continues on a decline at a negative growth 16%. Three wheelers sales also dropped sharply by 10% by the year 1998-99. Only the two wheeler segment has witnessed at positive growth of 12%. The recessions in automobile Industry will not only adversely affect the OEMS but also the others connected in Industry like auto components, accessories, steel etc. Due to its far-reaching forward and backward linkages, the automobile Industry has come to play an important role in the national economy in terms of contribution to GDP, revenue collection of central and state Governments, direct and indirect employment generation, Passenger and freight movement and technology spin off effect on related sectors of Industry.
[...] At the time there were five Passenger Car manufacturers in India - Maruti Udyog Ltd., Hindustan Motors Ltd., Premier Automobiles Ltd., Standard Motor Production of India Ltd., Sipani Automobiles. Ashok Leyland Ltd. and TELCO were strong players in the Commercial Vehicles sector. In 1983-84 Bajaj Tempo Ltd. entered into a collaboration with Daimler- Benz of Germany for manufacture of LCVs. Important policy changes like relaxation in MRTP and FERA, de- licensing of some ancillary products, broad banding of the products, modifications in licensing policy, concessions to private sector (both Indian and Foreign) and foreign collaboration policy etc. [...]
[...] Lancer is struggling to make any major dent into the Indian market, though the same is considered a high quality car in passenger segment. Mitsubishi has for the present ruled out any participation in to volume game through smaller car. However, they are planning to introduce bigger cars in the passenger car segment. They have put on hold their sports utility car Pajero which will be decided in full view of India's automobile policy. Mitsubishi has only seven years technical tie up with Hindustan Motors Ltd. [...]
[...] This enabled the respondents to apply for fresh loans and go in for new cars You bought a car because of Findings: The three primary reasons for most of the respondents to go in for mid size car are family needs, increase in family size and finally it suits the lifestyle and personality You decided to buy your existing car because of (rate best 3 factors from 1-3 in order of your preference) Findings: Esteem: Respondents bought Maruti Esteem because of its affordable price, manufacturers image and value for money. [...]
[...] In August 1997, a major dispute broke out between the Government of India (GOI) and Suzuki Motors Corpn Japan. The issue was the appointment of R.S.S.L.N.Bhaskarudu as managing director in August 1997. SMC objected to his appointment alleging that Bhaskarudu was incompetent. SMC also described the appointment as illegal, as its five directors who comprise a majority of the company's board strength of had opposed the appointment. The GOI's argument was that as per the amended agreement between the two partners in 1992, each partner could nominate a managing director for five years and there was no need for any discussion on it. [...]
[...] Hyundai Accent HMC is progressing into the 21st century as the leader of Korea's automotive industry, dedicating to establishing the industry in an era of globalization - Sonata launched Chonju CV R&D Center opened Automotive Voice Control System developed Low emission diesel engine introduced Hyundai unveils proprietary engine control unit Hyundai Coupe sports coupe introduced Dynasty luxury car launched Hyundai introduced Korea's first car credit card Phase 2 of Namyang R&D Center completed Sonata's cumulative domestic sales top 1 million Hyundai develops active noise control system Cumulative exports surpass 4 million units Cumulative production surpass 10 million units Construction of Asan plant completed Groundbreaking ceremony for Indian Plant New European parts distribution center opened 1997 - Starex/H1 debuts Proprietary Epsilon engine unveiled Chonju CV plant goes into operation Atos goes on sale Hyundai Auto Plaza opens Construction of Turkey plant finished Green Service introduced Super Truck series unveiled One-Call Service launched 1998 - Proprietary Delta Engine, the world's most compact and lightest engine, unveiled Price Alwaleed of Saudi Arabia invested US$ 50million Completely new Sonata debuts European concept car developed Logistic Center in Belgium opens for business Hyundai XG premiered Hyundai Motor India Limited starts operation Export of commercial vehicles to U.S.A. [...]
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