Posted by: Durga Prasad | August 13, 2013
Consumers who were cash-strapped through 2008 and 2009, and much of 2010, have now gradually regained their purchasing power. However, despite improved financial standing of consumers, the number of cars being sold in India has seen a steadily declining growth rate since 2010. An Economic Times report states that in the year 2011-2012, the sales grew by a mere 2.19%. Although the Society for Indian Automobile Manufacturers or SIAM said that a boom in sales in March has rescued the floundering industry, OEMs are looking for means and ways to increase their consumer base as well as cut costs of production and operations.
Posted by: Durga Prasad | August 07, 2013
I often think that there is so much in common between cars and cellular phones. There was a time when phones were simply used for making calls. Next came the age of SMS and MMS, which led to the integration of cameras into phones. Consumers demanded music on the go and so cell phones became music players too. As consumers continued to demand utility and convenience, add-ons to mobile phones kept increasing to the point that, today, a ‘smart’ phone functions as a laptop, music player, camera, scanner – often even a torch light. I believe that cars are on the verge of undergoing a similar fast paced technological development where each car will allow its owners to stay ‘connected’ with their friends, colleagues and other car owners.
Posted by: Durga Prasad | July 11, 2013
When the great recession of 2008 – 2009 hit major global automotive manufacturers such as GM and Chrysler, I could not help but wonder how such giants could fall in such a short span of time. These were companies that had been running profitably for decades, having operations and distribution across the globe, with revenues turnovers into billions of dollars. We generally take it for granted that large firms have it all figured out and are, obviously, managing their risk well. The numerous, hard hitting bankruptcies of 2008 and 2009 were a major wakeup call for businesses, economists and consumers alike.
Posted by: Durga Prasad | July 10, 2013
The Indian automobile industry has emerged as the 7th largest in the world. According to the Society for Indian Automobile Manufacturers (SIAM), the automobile industry has already invested Rs 70,000 crores in the past four years in building new factories, adding fresh capacity and bringing out new products.