Automotive News - October 6, 2008 - (Page 16B) 16B • OCTOBER 6, 2008 Automakers find India tough market to conquer Mehul Srivastava autonews@crain.com NEW DELHI — For a market so full of promise, India’s automotive industry is surprisingly treacherous. Many have come and failed, including Daewoo Motor Co. from Korea and PSA/Peugeot-Citroen from France. Others, such as Ford Motor Co. and General Motors, have faltered but keep fighting. But on India’s crowded streets, Toyotas and American cars are rare. Instead, the roads are dominated by cars made for Indian conditions and shaped by the regulations of India’s Ministry of Industry. The cars are nimble and fuel-effi- cient, but they’re often underpowered and short on comfort features. How they rank India’s top 5 brands in unit sales in the first half of 2008 1. Maruti Suzuki: 359,665 2. Hyundai: 136,194 3. Tata: 114,716 4. Mahindra: 57,628 5. Chevrolet: 33,955 Total: 819,998 Source: JATO Dynamics Attractive market The allure of India’s car market is obvious. According to data from J.D. Power and Associates, sales have grown from 783,636 units in 2002 to 1.69 million in 2007. In 2008, sales are expected to grow to more than 1.88 million. India has a large middle class eager to buy cars. Moreover, the market’s long-term prospects are fueled by economic growth well above 7 percent and a government eager to boost foreign investment. REUTERS “DOWN-SIZING” OR “RIGHT-SIZING”? ACCORDING TO NEW STUDY, CAR BUYERS SAY “BOTH.” Acxiom’s Automotive Consumer Dynamics study helps marketers pinpoint target buyers. For a complimentary subscription, visit www.acxiom.com today. In addition, the Indian government sees the possibility of turning the country into the world’s low-cost Workers assemble cars in Hyundai’s plant in Sriperumbudur. In India, Hyundai is No. 2 in sales behind Maruti Suzuki. manufacturing hub. These factors have attracted most of the world’s major players. The auto industry is one part of the economy that the government would like to expand sharply. It wants to boost auto industry sales to close to 100 billion euros (about $146.1 billion) by 2016 from about 13 billion euros ($19.00 billion) a year currently. Lawmakers also want to increase export revenue from all automotive products to at least $34.68 billion a year from about $4.09 billion now. To do so, the Indian government has encouraged foreign direct investment and provided enticements to foreign manufacturers. Large investments that are yet to be completed include $577.9 million from Volkswagen in the city of Pune and a joint venture involving Nissan, Renault and two-wheel-vehicle manufacturer Bajaj Auto Ltd. to make a low-cost car. Is your stamping supplier diversified enough to survive the current automotive downturn? than 400 companies by 2017 – Plante & Moran is in distress – BBK Ratings analysis, 2006 double the public sector) are in distress – BBK Ratings analysis, 2006 India’s top 3 But foreign automakers must compete with three entrenched players. Together, Maruti Suzuki, Hyundai Motor Co. and Tata Motors Ltd. control nearly 86 percent of India’s passenger-car market. Maruti Suzuki has been the most successful in adapting to government regulations, which tax small cars the least and discourage large cars with a tax of up to 25 percent. Korea’s Hyundai Motor remains a serious competitor, both for India and as an exporter. Its locally designed and manufactured i10 is Hyundai’s No. 3 seller in Europe, with a volume of more than 25,198 after seven months, according to market researcher JATO Dynamics, of the United Kingdom. Tata Motors, most famous for its promise to make the $2,500 Nano, built India’s first locally designed and manufactured car, the Indica, in the late 1990s. From that beginning, Tata has captured more than 12 percent of the passenger-car market. With the Nano, Tata expects to pass Hyundai to become the country’s No. 2 player. Between 2001 and 2007, Indian car sales grew at a compound annual rate of 18 percent. But recently they have slowed a bit because inflation has reached a 12-year peak and interest rates have doubled since 2003. This has forced Indian car buyers to pay as much as 15 percent interest on new cars. “The biggest reason for the decline is interest rates and inflation,” says Ashutosh Goel, an analyst at Edelweiss Capital in Mumbai. “Also, with new models on the way, there is a sense that customers might be waiting to make purchases.” c bankruptcy – AlixPartners study, 2006 Ice Industries is your emergency offload/die takeover specialist - Financially stable and growing supplier for turnkey stamped assemblies - Business diversification is our strength; less than 25% automotive - Rapid growth from $4 million in 1999 to more than $125 million in 2008 - Proven takeover program management discipline with more than 450 dies in the last 24 months alone - Diverse capabilities ranging from 0.035 to 0.250 gauges; materials http://www.acxiom.com http://www.acxiom.com http://www.iceindustries.com/takeover http://www.iceindustries.com/takeover
Table of Contents Feed for the Digital Edition of Automotive News - October 6, 2008 Automotive News - October 6, 2008 Many dealers floored by floorplan limits, costs THE GREAT COLLAPSE September was awful, and 2009 looks ugly GMAC is out of leasing — at least for now Versical, Nussel take new Automotive News posts GM to shut Ohio SUV plant 2 years ahead of plan VW commits to minority purchasing goals in Tenn. Chrysler exec to outline EV strategy at green conference Automakers are high on electrics Dealers give mixed reactions to Chrysler incentive program Chrysler boosts 2009 vehicle prices Lenders move fast to liquidate Heard's stores Mazda Kiyora Toyota, Audi mull tiny cars for U.S. Audi to decide next year on U.S. production Volvo plans diesel hybrid by 2012 Coupelike styling is back in a big way Honda Insight target price: Around $19,000 Mercedes plans U.S. sales of hybrids in S, E, C classes BMW is working on 2 small crossovers VW-Porsche feud risks growth plans Let's get clunkers off the road and spur the economy Europe: Still very different from us It could improve Caddy's image Shouldn't Cadillac try something new? A 4-cylinder is just what Cadillac needs Government's a player in Europe, too The Chevy Cruze should be big news Simple steps would revive industry Ford stops buying nonessential factory supplies Chevy, Mazda execs to speak at congress Automakers find India tough market to conquer Mahle CEO: Most engines will be smaller by 2012 GM begins streamlining purchasing TL stretches factory's flexibility Personnel Study: Dealers gain on independent shops Chrysler offers service contracts on certified vehicles No label Flashes of genius, years of turmoil VW seeks excitement with Routan, CC, Rabbit Sales soft, but Europeans plan to expand lineups 2010 redesign planned for Bentley flagship Alfa beyond Competizione Ferrari: Recession-proof and turning ... green? Maserati: Sporty gets even sportier Uncertainty surrounds Volvo's product plan Rolls-Royce goal: Add customers Panamera: Can Porsche defy skeptics again? Audi longs to join luxury big-leaguers in U.S. BMW plans more variants beyond sedans, wagons Under new owner, Aston Martin back in the race Lagonda's forte: Luxurious sedans that go very fast Couped-up? Lamborghini considers a sedan 250-mph Bugatti boosts the excitement Mercedes returns to the luxury suite Mini follows BMW's lead Smart ambitions, like car, remain small Suppliers cut staff, output to cope with downturn Driver monitoring systems differ High-tech mirrors are poised to make big gains IAC will open first India plant Supplier personnel Engineers call for common electric car standards Land Rover aims to boost the fuel economy of its SUVs Maybach adds open-top 62S Landaulet Saab gets a crossover in 2009; everything else is on hold Jaguar regains its focus on low volume, high end Dealers Economic winds batter Sept. sales Jaguar Land Rover joins group Ford aids minority suppliers CarMax plans 600 job cuts Ruling could ease disputes Feds seek more time for roof strength rule Suzuki seeks floorplan credit partner for dealers Toyota battles Detroit 3 with cheap loans $25 billion: How'd they do that? Peapod: Innovator's little big idea FOR SALE: Heard condos, mansion, jet Is film a flash in the pan? Ford hopes so VW: Next New Beetle will be 'more mature' Renault's U.S. ally of choice? Probably not Chrysler Automotive News - October 6, 2008 Automotive News - October 6, 2008 - GMAC is out of leasing — at least for now (Page 1) Automotive News - October 6, 2008 - GMAC is out of leasing — at least for now (Page 2) Automotive News - October 6, 2008 - Automakers are high on electrics (Page 3) Automotive News - October 6, 2008 - Lenders move fast to liquidate Heard's stores (Page 4) Automotive News - October 6, 2008 - Lenders move fast to liquidate Heard's stores (Page 5) Automotive News - October 6, 2008 - Volvo plans diesel hybrid by 2012 (Page 6) Automotive News - October 6, 2008 - Volvo plans diesel hybrid by 2012 (Page 7) Automotive News - October 6, 2008 - BMW is working on 2 small crossovers (Page 8) Automotive News - October 6, 2008 - BMW is working on 2 small crossovers (Page 9) Automotive News - October 6, 2008 - VW-Porsche feud risks growth plans (Page 10) Automotive News - October 6, 2008 - VW-Porsche feud risks growth plans (Page 11) Automotive News - October 6, 2008 - A 4-cylinder is just what Cadillac needs (Page 12) Automotive News - October 6, 2008 - A 4-cylinder is just what Cadillac needs (Page 13) Automotive News - October 6, 2008 - Simple steps would revive industry (Page 14) Automotive News - October 6, 2008 - Simple steps would revive industry (Page 15) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page 16) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-1) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-2) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-3) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-4) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-5) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-6) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page 16A) Automotive News - October 6, 2008 - Automakers find India tough market to conquer (Page 16B) Automotive News - October 6, 2008 - Automakers find India tough market to conquer (Page 16C) Automotive News - October 6, 2008 - GM begins streamlining purchasing (Page 16D) Automotive News - October 6, 2008 - Personnel (Page 17) Automotive News - October 6, 2008 - Personnel (Page 18) Automotive News - October 6, 2008 - Personnel (Page 19) Automotive News - October 6, 2008 - Chrysler offers service contracts on certified vehicles (Page 20) Automotive News - October 6, 2008 - Flashes of genius, years of turmoil (Page 21) Automotive News - October 6, 2008 - Sales soft, but Europeans plan to expand lineups (Page 22) Automotive News - October 6, 2008 - Alfa beyond Competizione (Page 23) Automotive News - October 6, 2008 - Alfa beyond Competizione (Page 24) Automotive News - October 6, 2008 - Alfa beyond Competizione (Page 25) Automotive News - October 6, 2008 - Rolls-Royce goal: Add customers (Page 26) Automotive News - October 6, 2008 - Rolls-Royce goal: Add customers (Page 27) Automotive News - October 6, 2008 - Panamera: Can Porsche defy skeptics again? (Page 28) Automotive News - October 6, 2008 - Panamera: Can Porsche defy skeptics again? (Page 29) Automotive News - October 6, 2008 - BMW plans more variants beyond sedans, wagons (Page 30) Automotive News - October 6, 2008 - Couped-up? Lamborghini considers a sedan (Page 31) Automotive News - October 6, 2008 - Smart ambitions, like car, remain small (Page 32) Automotive News - October 6, 2008 - Suppliers cut staff, output to cope with downturn (Page 32A) Automotive News - October 6, 2008 - Driver monitoring systems differ (Page 32B) Automotive News - October 6, 2008 - High-tech mirrors are poised to make big gains (Page 32C) Automotive News - October 6, 2008 - Engineers call for common electric car standards (Page 32D) Automotive News - October 6, 2008 - Jaguar regains its focus on low volume, high end (Page 33) Automotive News - October 6, 2008 - Dealers (Page 34) Automotive News - October 6, 2008 - Dealers (Page 35) Automotive News - October 6, 2008 - Dealers (Page 36) Automotive News - October 6, 2008 - Dealers (Page 37) Automotive News - October 6, 2008 - Dealers (Page 38) Automotive News - October 6, 2008 - Dealers (Page 39) Automotive News - October 6, 2008 - Dealers (Page 40) Automotive News - October 6, 2008 - Economic winds batter Sept. sales (Page 41) Automotive News - October 6, 2008 - Economic winds batter Sept. sales (Page 42) Automotive News - October 6, 2008 - Feds seek more time for roof strength rule (Page 43) Automotive News - October 6, 2008 - Toyota battles Detroit 3 with cheap loans (Page 44) Automotive News - October 6, 2008 - Toyota battles Detroit 3 with cheap loans (Page 45) Automotive News - October 6, 2008 - Renault's U.S. ally of choice? Probably not Chrysler (Page 46) Automotive News - October 6, 2008 - Renault's U.S. ally of choice? Probably not Chrysler (Page 47) Automotive News - October 6, 2008 - Renault's U.S. ally of choice? Probably not Chrysler (Page 48)
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