Mar. 19 – In a strategic move that underlines the dawning recognition of India’s growing wealth, the auto manufacturer Volvo, owned by Geely of China, is preparing a long term strategy for the Indian market which will concentrate on luxury cars.
In a statement to news agency PTI, Volvo Auto India MD Tomas Ernberg said the market for luxury cars in India has “the potential to grow fantastically”. He further stated that the company’s growth strategy was to focus on high net individuals.
Its sales last year of 812 luxury cars was an impressive 150 percent increase from 2011. The target for next year is 1100 cars, although the company predicts that they will overshoot this goal by some 300 cars. Continue reading
Feb. 20 – Motherson Sumi Systems, India’s largest auto parts manufacturer, is pursuing an aggressive expansion strategy and is looking to significantly increase its market share in China, Brazil and the United States. The company is already adding capacity to its China plants, which currently supply rear view mirrors, bumpers and body parts to Porsche and Volkswagen, and to its operations in Thailand, Brazil and Mexico. The company has a US$5 billion sales target for 2013.
“New volumes will come from developing countries,” said Motherson’s CEO, Pankaj Mital. Continue reading
Apr. 9 – India is the second fastest growing vehicle market in the world. The main reasons for this are its rising levels of disposable income and the country’s growing middle class. The passenger car density in India is still very low, 11 per 1,000 people, compared to 45 per 1,000 in China. However, while growth potential is plentiful, traffic congestion and pollution could crop up as problems in the future.
In 2011, fuel prices across India rose in response to the government’s raising of interest rates. Despite these unfavorable circumstances, and the fact that car sales fell in the second half of 2011, 2012 observers are optimistic about prospects for the local Indian vehicle market. Expectations are a rise in vehicle sales by 10 percent in 2012. Continue reading
Sept. 15 – The Indian government foresees Rs. 50,000 crore (US$10.54 billion) in private investments in the highways sector this fiscal as it awards contracts for building 7,300 kilometers (4,536 miles) of roads.
According to India’s Ministry of Road Transport and Highways, bids for about 4,600 kilometers have already been received or invited this year and the Ministry will award concessions for 7,300 kilometers before the year ends.
In the first four months of the current year, the government has awarded public-private partnership (PPP) projects with an investment of over Rs. 21,000 crore. The bids received are far better than estimated bids for these projects. This will give the government additional revenues of more than Rs. 10,000 crore. Continue reading
Jul. 29 – U.S. auto giant Ford said yesterday it would invest US$1 billion to build a vehicle assembly and engine plant in Gujarat as it increases production to exploit the country’s burgeoning car market. The new factory will employ around 5,000 workers and will be the firm’s second in India.
“Ford has very aggressive expansion plans in India and in Asia Pacific and Africa,” stated Joe Hinrichs, president of Ford Asia Pacific and Africa. Continue reading
Mar. 31 – Indian businesses have been busy recently signing new cooperations with foreign companies across the world. Here we provide a summary of some of the most important deals Indian companies have signed across several industries.
Ashok Leyland and Nissan unveil first LCV
India’s second largest heavy commercial vehicle manufacturer Ashok Leyland rolled out its first light commercial vehicle (LCV) Dost together with its partner, the Japan-headquartered automaker Nissan. As the current joint venture between the two companies covers cooperation in manufacturing, technology and power train for LCV production, in the future the two parties will likely expand their JV to include van design and development. Continue reading
Mar. 23 – India’s auto companies that import parts for their assembled car manufacturing may face a cost increase due to the country’s growing customs duty on pre-assembled parts and the expanded definition of semi-knocked down (SKD) kits.
The recent Indian 2011 budget proposal says that automakers that import pre-assembled components will need to pay a 60 percent customs duty, while the import duty for completely-knocked down (CKD) kits is only 10 percent. At the same time, the new proposal also set up a wider definition of SKD kits: not only is a pre-assembled engine, gearbox or transmission mechanism considered as an SKD kit, but now a body assembly coupled with an assembled engine, gearbox or transmission installed is also counted as an SKD kit. Since those two categories were previously classified as CKD kits, the definition alteration means auto companies that produce with those imported components will bear a higher customs duty. Continue reading
Feb. 22 – Luxury car-maker Rolls Royce has stated they will be expanding their network in India to take advantages of the new sales opportunities in the country. India is the manufacturer’s second-fastest growing market in Asia.
“India is one of the major markets for us in Asia, the second-fastest growing after China,” Rolls-Royce Motor Cars Chief Executive Officer Torsten Muller Otvos told reporters in Delhi. “We want to be present where our customers are, so we are looking at enhancing our distribution.” Continue reading