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Will the recession bring down the Indian automobile industry?

Created by : Sudhish Chatterjee, Product Development Manager, Motors  | 02 10 2009 07:57:21 +0000
Industry : AutomobileFunctional Area : Growth(Strategy & Execution)
Keywords : recession car automobiles tata auto automobile industry automotive toyota maruti honda ford car sales bmw automobile parts nissan automobile sales car price automobile india chervolet recession in automobile sector
Activity:  1669 views;  last activity : 07 06 2010 20:18:09 +0000

Will the recession bring down the Indian automobile industry? What you think guys.....???

  
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Yes Vs No
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Top Argument
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Recession if taken only by its definition

and

preventing it from taking away or numbing our motivation and our strength in terms of betterment will definitely get the recession lost.  If you agree that , the cycle repeats , then i would request your humble insights into the following points.

1. Recession hit , salaries/earning potential down -> consumer capacity to buy the car exists ( not speaking of people , who want to buy a car by taking a loan or finance.). But still the customer is not willing to put it up to the car , why?

In my opinion, with this recession and all the customer is never able to get a concrete price from the market, will the price of the vehicles tomorrow go down or up ? , and therefore he definitely doesnot want to take risk or be a scape goat for his wish or enthusiasm of buying it today.

So the solution i feel is - Provide customers with upgradable oppurtunities , come out with flexible designs , give more and ask same , though not more. Improve safety and show worth for customer in terms of reliability ( Educate customers in terms of technology and why they should be proud of buying their vehicle.) Family having a car is good, but a family which knows why they have only that car is deciding.

Did not get still what iam speaking ? We are all educated in terms of Automobiles as product designers, system designers , Product development managers and so on, but we still debate on interesting topics like  FWD or RWD and so on. Remember no body bought PCs when it was in DOS, every one now wants or gets a PC because Windows made it WYSIWYG.

 

 

 
By malikireddy , Controls systems Team Manager., VESTAS Wind Systems A/S.  02 12 2009 15:47:01 +0000
 
Top Argument
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No it will not bring down the Indian automobile industry infact it is a great oppurtunity, as Indian cars are much cheaper than the US and European counterparts and one willl resort to spend less during this downturn and crisis, but with having basic amenities, so if Indian automobile industry improves its cars and designs it would create a great demand world over and the best example is Nano which generated huge response.. So going by these events one can be sure that the future is looking good for Indian automobile industry....
By Komal Saini, Product Development Manager, Maruti  02 18 2009 06:58:49 +0000
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@Mr.Sonu

can you please define fraudster! and Genuine buyers !! ?

In my opinion , every human being who has a will and aims for the capability of making something his or hers is a customer by begging or borrowing , here particularly we are not speaking about stealing. If every Genuine customers are only wanted , what are the measures one needs to take? Can you define it to me.?

Mr. Sonu nothing personal is intended here , iam speaking with notion of business and its rule, and of all ofcourse, where did this fraudsters develop into ... it reminds me of a saying which i feel is not communism or something like that ... but though not equal very similiar to it.

Rich mans fa** is a disease and poors man is stink! Please elaborate!
By malikireddy , Controls systems Team Manager., VESTAS Wind Systems A/S.  | 05 18 2009 20:06:23 +0000
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If recession don't kill our Auto industry then the sloppy way we handle our economy and soverign will. Reasons,

1)The environment is not designed for Automobiles. If so we wouldn't have congestions, jams and enough parking spaces in cities for automobiles(even villages and towns like US). An environment should be designed for Automobies.

2) Having been a socialistic country for 50 years our policy makers and general public do still nurture the idea that automobiles are for the wealthy and not as a convenience and welfare tool for easy mode of transportation.

3)We as a nation hasn't defined our mission or goals as a nation yet. So we cannot remove the confusion in the mindsets of the people living here as to why they exist and what they should do to reach some or any goals at all.

4)Developed nations are created otherwise. They have their goals and culture built up around production and environment to support automobiles.

5)Unless atleast we have highways built up like American Interstate highways or German Autobhans we are going to have a tough time pushing sales beyond certain threshold levels in future.

6)Fair exchanges in sales, income and cost based demand pricing so that everyone can afford cars if the 5) is implemented.

These are not  exhaustive suggestion but a few. Other economic reason might include high insurance costs, maintainance which all might come under fair exchanges and other economic factors.

 
By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 04 05 2009 19:08:08 +0000
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1

FUEL, ROLLING FRICTION, TON, SPEED , HP ARE MAIN DECIDING ELEMENTS IN  DESIGN OF  AUTOMOTIVE
ANY FUEL DESIGN [ ANDY ENGINE], LOW ROLLING FRICTION [ ANDY BEARING] DESIGN  1.3/0.62= 2.1 FWD  VEHICLE
ANDY ENGINE GETS SAME HP IN 1/3  VOLUME  HENCE  ADVANTAGE IS 2.1*3= 6.3  
MEANS  SPEED , TON, HP REDUCTION CAN BE 6.3   VDF= W*S/HP
MEANS   NOW  2 TON CAR RUNNING AT 100 KMPH WITH 100 HP MILEAGE 12.5 KMPL
WILL RUN AT 630 KMPH AT SAME 2 TON 100 HP   MILEAGE 6.3*12.5 = 78.75 KMPL OR
WILL CARRY 2*6.3= 12.6 TON  BY SAME 100 HP, AT 100 SPEED  MILEAGE 78.75 KMPL
By m a umapathy, Engineering Manager, hub Fatts Engr Singapore  | 02 13 2009 00:40:53 +0000
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Yes, the effects of recession has already been seen in Indian Automobile Industry, with sales figures dropping down even in the months of october when Indians consider the best time to buy new cars...Also the layoffs happening due to decline in production units...
By Vivek Sharma, Product Development Manager, Maruti  | 02 12 2009 11:10:18 +0000
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The way the car sales figure is declining the answer seems to be yes. What you think guys.....
By Sudhish Chatterjee, Product Development Manager, Motors  | 02 10 2009 07:57:21 +0000
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It seems that this is the right time to hit our domestic and international market with our elegant, stylish design with much more cleaner environment based engines,..

If we use this situation as huge weapon  with our intellectual ideas then we can win the recession race,.. This is a common problem for all, so any one in the world use their potential to extent, they can win easily,..


By Thiyagarajan , Engineer-Design, Flowserve  | 09 30 2009 03:07:07 +0000
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As the recesion will bring only the genuine buyer to the narket all fraudsters & defaukter will be out


By Sonu Gurnani, Branch Manager, Indraprastha Automobiles Pvt Ltd  | 05 18 2009 16:13:12 +0000
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The recession effect is mainly on the Software industry and thus the Real estate. Indian GDP is dependent for 50 % on these areas. We should look at the point that, though there would not be a software boom, still our economy would have grown with the existin domestic demand as well as other industrial growth, may be slower but strurdier.

We can grow even if the US does not exist on earth. Infact, we would have grown even better, as CIA activities does't play on us.

Domestic demand for automobile industry has to be sintificly addressed by the Auto Cos. Rural market is still to be explored and exploited with BTL activities as well as spending resonably on ATLs. We have Europe, Asia, Middle east and Europe for support of Export market. The produt delvelopment, i.e. R&D and production tech to surpass their quality.

There will only be a temporary effect of recession on Auto industry. Sufficient supply and demand ratio has to be calculated more systematicly. 
By Tata V.S. Kameswara Rao, Proprietor, Deals-on-Wheels  | 03 13 2009 06:59:39 +0000
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Though recession has affected indian economy somehow but still there is some stability in Indian economy compared to European or American economy. We Indians like to do more saving than spend money for purchasing anything which we do not need. We know the difference between "nice to have" and "need to have". We do not shop till we drop. There is a great potential market for automobiles in India (No of consumers is increasing steadily thanks to the economic growth). The great automobile companies are heading for Indian market.
By subrata bhattacharya, Industrial Engineer, concentric pumps  | 02 13 2009 15:54:17 +0000
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Our Auto industry might turn out to be leaner and meaner. Companies will be more efficient & learn the right lessons from this crisis. No one expects the slowdown to last more than an year, though things would be tough in this period for sure. After the tax cut, prices for vehicles are really attractive, and dealers desperate for sales might offer even more discounts. Our auto industry will make up by catering the domestic demand....


By Deepti Behl, Product Development Manager, Maruti  | 02 10 2009 11:07:55 +0000
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