India Inc. can buy foreign car brands. Global giants will increasingly vie to design new models in India. The country may in fact become a global automotive manufacturing hub in due course of time. This will signal the onset of the Grand Car India Global Strategy
In one way, the political reign of Malaysia’s
former CEO, Mahathir Mohamad, was similar to the corporate one of Ratan Tata, current CEO, Tata group. Both dared to dream about a ‘Nationalist’ car. In the early 1980s, Mahathir decided that he would launch an ‘Islamic’ model, Proton, which would also sell in global markets. In the 21st century, Tata has forced a change in global mindsets; he talked of the world’s cheapest car at $2,500 that will be designed and made in India. Both were ridiculed.
The critics turned out to be right about Proton. It flipped, flopped, and failed. Although it once commanded a 65% share of Malaysia’s market, it was because of government sops. In recent times, it lost out to foreign players, piled up huge losses, and is likely to be sold off. But this may not be the case with Tata. He has been successful with the Indica, which was manufactured in India. He has learnt from his mistakes and set in place processes and systems that will help build the Rs.1 lakh model. More importantly, he has forced global players to think of ways to make a cheap, compact car.
When it happens (we are not even worried about the ‘if’ part), India will emerge as a truly global auto player. Hopefully, by then, either Tata or M&M’s Anand Mahindra would have purchased the renowned Jaguar and Land Rover brands; at the time of going to the press, Tata was ahead in the bidding race. Surely, by then, Maruti Suzuki would be ready with its first indigenous model that has been designed and made in the country. Who knows, by then, M&M or Tata might have purchased an international carmaker. Suddenly, the latent potential for ‘Car India’ seems immense. Ramnath S, Analyst, SSKI, agrees, “The phenomenon of making of a global automotive superpower is already taking place. The Indian automotive industry is already a name to reckon with on the global turf.” Adds Steve McCormack, VP (Marketing), Ford India, “India is slowly and gradually moving on the pathway of becoming a global super automotive might.” Without spelling it out, Peter Kronschnabl, President, BMW India, points out that “India has a strategic importance in BMW’s global vision.” According to Jigar Valia of Parag Parikh Financial Advisory Services, “Tata may actually break the ice. India is already becoming a Global Brand.”
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
In one way, the political reign of Malaysia’s
former CEO, Mahathir Mohamad, was similar to the corporate one of Ratan Tata, current CEO, Tata group. Both dared to dream about a ‘Nationalist’ car. In the early 1980s, Mahathir decided that he would launch an ‘Islamic’ model, Proton, which would also sell in global markets. In the 21st century, Tata has forced a change in global mindsets; he talked of the world’s cheapest car at $2,500 that will be designed and made in India. Both were ridiculed.The critics turned out to be right about Proton. It flipped, flopped, and failed. Although it once commanded a 65% share of Malaysia’s market, it was because of government sops. In recent times, it lost out to foreign players, piled up huge losses, and is likely to be sold off. But this may not be the case with Tata. He has been successful with the Indica, which was manufactured in India. He has learnt from his mistakes and set in place processes and systems that will help build the Rs.1 lakh model. More importantly, he has forced global players to think of ways to make a cheap, compact car.
When it happens (we are not even worried about the ‘if’ part), India will emerge as a truly global auto player. Hopefully, by then, either Tata or M&M’s Anand Mahindra would have purchased the renowned Jaguar and Land Rover brands; at the time of going to the press, Tata was ahead in the bidding race. Surely, by then, Maruti Suzuki would be ready with its first indigenous model that has been designed and made in the country. Who knows, by then, M&M or Tata might have purchased an international carmaker. Suddenly, the latent potential for ‘Car India’ seems immense. Ramnath S, Analyst, SSKI, agrees, “The phenomenon of making of a global automotive superpower is already taking place. The Indian automotive industry is already a name to reckon with on the global turf.” Adds Steve McCormack, VP (Marketing), Ford India, “India is slowly and gradually moving on the pathway of becoming a global super automotive might.” Without spelling it out, Peter Kronschnabl, President, BMW India, points out that “India has a strategic importance in BMW’s global vision.” According to Jigar Valia of Parag Parikh Financial Advisory Services, “Tata may actually break the ice. India is already becoming a Global Brand.”
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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