| Topic : How to Beat Recession in Automobile Sector? |
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Global Automotive Forum |
Research_Development_Design |
Life on a fast lane |
1 more ...
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Activity:
435 views;
last activity : 07 06 2010 20:18:09 +0000
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Exploring new markets !!!
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Exploring New policy with New concept of lending
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Five C's for your Success in Recession...
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effects of recession on the automobile sector
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Easy lending policies...
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Agressive Campaign
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Please help, am doing a research.
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HYPER MILEAGE AUTOMOTIVE
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Go rural
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TRANSPORT... INV 800 Bn$.... RETURN 15 Bn$/DAY
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HIGH SPEED, LOW FUEL CAN SAVE INDUSTRY
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Alternative-fuel powered cars
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Please need some more help
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urgent
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increase in volume of sales with lean tools and government policies
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LOW ROLLING FRICTION IN ALL TRANSPORT
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Efficiency!!
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I feel Automotive manufacturer should look at exploring new markets in Southeast Asia and South America, to boost revenues. There is a huge demand of fuel efficient cars.... |
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Dear all,
Thats right ,but to promote our Auto Industry like we promoted our IT industry , we need to work out on technologies.
Like we follow Bharath 3 Norms , where as in markets like US , UK, Germany , France its Euro 5 norms. What ever this norms speak of is of little interest.
In my belief, if iam operated in my leg , i would sit in the hospital itself and improve my skills in different field. So is the recession here good for us - it lets us think what should we do that somewhere a recession does not hit our grounds , we need to first get out with ideas in Mech engineering use our great potential of Abstract thinking, get to work on rapid development tools, simulate test and design and do it right in the fast loop of design and test cycle. Iam sure , with this things, we can hit the market running spreading our cheap cars ,manufactured in India and designed Collabaratively , like IT , our manufacturing techniques and manufacturing engineers should now put up the heads and go for it. Like IT also in the initial times had pulled almost every engineer to study computer schience , so now atleast we can share the loads and recession on all , so that one looses only half , and other gets another half. Share strength , ideas , appreciation. Thats what moves us in hearts , so it should move our legs.?
Iam out on my legs in the hospital already ?? .. Iam sure We will do it. Mere desh sabse pyaara!
i quite agree that going global will improve our forex and going for some african and south american countries will certainly boost the automotive sector .
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The Cost of new vehicle has to comedown for markets,with less delivered price. Professional has to work with lean management and cost effective sources. Vehicle manufacturers has to work to sell out vehicles, with aligned sources and concepts. |
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Mr.Dinakaran i agree with you. In times like this an industry need to be flexible enough to quickly change their strategies to meet the customer expectations.One way for automobile industry to combat recession is to reduce the prices of their cars and TATA and many other companies have already taken the initiative.They should think from the customer's perspective and change accordingly.But reducing the price will definitely reduce the additional features a company provides in their car,then will the customers accept this?
I completely agree with what dinakaran says that cost of new cars should be reduced in order to increase the sales.
I feel vehicles like Nano, Reva (electric car) will do well in these times. Fule efficiency and low price are the buzz words. A change in production and inventory policy is also necessary to cut costs. In addition to that, companies may work out new ways to attract investors and pressurize government o bring down interest rates on EMI of auto loans.
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A person or an Organization will survive forever, if they have the 5 C's 1) Character 2) Comitment 3) Conviction 4) Courtesy 5) Courage The Tragedy today is that there is many walking encyclopedias that are living failure. The more practical and appropriate views on this economic recession is: This is the time to reunite together for any small or big organization This is the time to motivate and retain people which are the biggest asset. This is the time to show more commitments to the customers This is the time to show values of our company to the world, and This is the time to stand by our nation
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Mr.Neelanjan i would agree with you that unity is the biggest strength and if all employees of the company from lower-level to higher management strive to achieve success then they will surely get that. So a company should try to overcome the tough times by taking all the employees of the company together.
What do you say?
Yes, I very much support ideas of 5 Cs of Mahesh Chandra as well as the view that every one of us as well company should stand side by side during this hard time if we want to remain stable & find the 1st step towards growth.As the human resource is the ultimate face of any company so by shedding man resource to reduce the overhead costs will not do any good to the improvement of brand value of any business rather that lowers the brand image. As a trained manpower can be shed in one day but to gain the same quality & loyalty in future may not be possible always.
If we can adhere to each other during tough times then in good times success is sure to come & improved brand image during tough periods will attract customers/clients more closer than getting away from it.Be cause according to marketing theory we know that more we see any thing more we remember it,more stable is a thing bound to be more bigger.
So lets unite & stay close because a single stick can be broken easily than a bunch of the same.
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Mr. Sudhish Chatterjee specifically n the others as well. I am a student of Symbiosis doing a research on this topic and therefore would like to know how was the growth before the recession set in and how exactly has the recession hit this market. Moreover, what change have you personally seen over the past 14-18 months? How has advertising and branding affected by recession? |
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Hi nisha thanks for raising the question, before recession Indian Automobile Industry had tremendous growth like 6-7 years straight it had seen growth, so the recession has not impacted very badly as it is in the case of US and European Countries the Indian automobile industry declined 4.7% to 96.48 lakh units in 2007-08 against 1.01 crore units in the previous financial year. Not only recession the automobile industry was also plagued by high interest rates affecting local consumer demand, credit squeeze and rising input costs, but interestingly it reported a robust growth in exports.
According to figures released by the Society of Indian Automobile Manufacturers (Siam), the total production also declined 2.29% to 1.08 crore units against 1.11 crore units as demand remained low.
But in the recent reports suggests that in India, there is increase due to the stimulus packages, and with cheap fuel available, one is seeing rise in sales, where Maruti,Hyundai,and Mahindra have increased sales in both India and overseas. And with Nano coming up with Automobile sector fighiting in the price range to woo the consumers one may see the growth in the coming quarters..
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Sudish yes one should explore new markets but we have a strong domestic demand which we should cater first. The problem for the automobile industry is rooted in the lending policies of government and the World's financial institutions and banks. These lending policies should be revived as per the convenience of consumers than only we will able to see the required growth..... |
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The challenge is current so have to make strategy around the time line, developing new models, efficient models is gyan.
he truth is how to liquidate current inventory and bring cash into system. the situation can be handled by giving extra incentives to sales person to close sales call on priority basis. has great experinece with car makers like BMW whose sales person forget to call for an appointment, VW people are still coming to me for a test drive- enquiry sent 3 months back. Tata motors took picture of client during vehicle delivery on 1st Sep, pictures are on the way till date.
Bank loan official told me - Sir today is sunday, not carrying calculator, please call me on monday. He forgot-who is client.
but there are great examples also like delhi DD motors, I was very impressed with there proactive service standards.
All the spokes- Sales, bank and polices have to be more proactive to face current problem. target to close % of calls which means following up with financers also. most of the co both are separate entity and therefore work separatly.
Such mistakes/ people kill the prospects.
I do agree to this but at the same time particularly for Indian Car manufacturers (JVs) like Maruti, we have substantial solutions within our country itself.If we see to the competitors like Hyundai i10 / 20 & Chevrolet Spark, we see they are innovative with great marketing strategy.Secondly, our products should be good looking & there should be a stylish way of doing the things like designing the dash board,front & rear looks as well.People who are buying these Hyundai models like I10 & 20, can be switched over to Indian indegenous companies when our companies keep improving the performance & power.Like a 1065 cc of Maruti WagonR equates almost equally to 1200+ cc of Santro hyundai in pricing.With almost same price, one is getting more power.This is where we have to develope our strengths & then we can compete.
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Agressive Campaigning by offering Special offers/Discounts |
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PLEASE MAKE STATEMENT BY TON-KMPL FOR AUTOMOTIVE
APPAN
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What is the current size of the automobile sector in India? How was the growth before the recession set in? How exactly has recession hit this sector? What change have you personally seen over the past 14-18 months? Being one of the market leaders how do you look forward to doing things in the short and long term keeping in mind the current market scenario? Recession must have slowed down all processes including sales, how important is branding & adverstising at such times? How advertising messaging and brand management has changed with recession in mind & what is your views on the immediate future of the 4 wheeler automobile sector in India. Moreover, how does communication ‘play a major role in your business? What are the strategies and patterns? It would be really great if you could please help me. I shall be so thankful to you. If its comfortable for you then could you please give me your contact no. or e-mail id so that I could communicate with you further.
Regards, Nisha, Student, Media Trainee
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I guess this will help some of your questions,
Data released by SIAM confirma that the auto industry is in a recession with passenger cars dipping by 19.38 per cent and commercial vehciles recording a sales slump of 49.52 per cent in November that is when the recession hit hard on every sector and this was mostly due to the wayward lending of loans from banks, so this was the unknown demand created by the banks for the consumers with all those loans and when the recession hit it was the worst ever decline in the past eight years.
Car market leader Maruti Suzuki India sales saw a decline of 24.84 per cent, whereas Hyundai Motor India Ltd (HMIL), the country's second largest carmaker also witnessed a fall of 23.32 per cent in its sales.
Two-wheeler sales slipped by 14.68 per cent at 5,67,502 units from 6,65,181 units in the same period last year, with motorcycle sales declining 20.24 per cent at 4,31,171 units as against 5,40,553 units in the corresponding month a year ago. Market leader Hero Honda registered a 1.41 per cent decline in bike sales at 2,67,424 units in November as compared with 2,71,251 units in the year-ago period.
While Bajaj Auto's sales plummeted by 52.96 per cent at 82,283 units against 1,74,936 units in the corresponding month last year, SIAM said. The government on Sunday had announced a major fiscal stimulus package to boost exports, Small and Medium Enterprises, housing and infrastructure projects, while slashing CENVAT rate by four percentage points across the board and providing for an additional spending of Rs 20,000 crore in the current fiscal.
The fiscal package was taken in conjunction with the series of monetary measures taken by the RBI in the past few months, including slashing repo rate and reverse repo rate by 100 bps each on Saturday to check the economic downturn. Vehicle makers have since said they would pass on the tax cuts to customers.
If that spending ... results in economic activity, and interest rates decline as envisaged by the RBI, by mid july you will see signs of improvement in numbers.
Firms which have cut prices include top carmaker Maruti Suzuki Ltd, Hyundai Motors India Ltd, Ford India and Hindustan Motors.
Two-wheelers manufacturers Bajaj Auto Ltd and Hero Honda have also cut their prices.
However, top commercial vehicle maker Tata Motors and utility vehicle manufacturer Mahindra & Mahindra are still to decide on passing on the benefits to the consumers by reducing prices.
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HYPER MILEAGE OF 11 TIMES IS DESIGNED VEHICLE KMPL RF FUEL NET KMPL . . Nor ADV ADV ADV Andy MPG . CAR 2T 12.5 3.66 3 11 137 324 CAR 1T 16 3.66 3 11 176 416 CAR 0.6T 20 3.66 3 11 220 520
TRUCK 20T 5 3.66 3 11 55 130 |
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ANDY ENGINE ROTARY ALL FUEL
ENGINE SIZE 30 CM DIA...6 CM THK ...175 HP
60 CM DIA...12 CM THK...1400 HP = 1 MW
600 CM DIA..120 CM THK...1.40 Mn HP= 1000 MW
DESIGN IS 3 FOLD
1 ENERGY SOURCE
2 ENERGY EFFICIENCY
3 OTHERS- SAFETY
ANDY NANO 600 KG CAR<b>
DESIGN HP CC kmph Fuel kmpl Ton-<b>
. L/hr kmpl<b>
TATA RWD 33 624 110 5.5 20 12 <b>
ANDY-AB 33 624 220 5.5 40 24<b>
ANDY-AT 33 200 220 1.0 220 132<b>
ANDY-AT 16.5 100 110 0.5 220 132 <b>
Andy Bearing-2 Speed, Andy Technology-1/3 Fuel/HP<b>
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Concentrate on rural retail finance facilities, especially thru RRBs & cooperative banks
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TRANSPORT, POWER PLANT. SAVED 15 Bn$/DAY |
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ANDY DESIGN
600 KMPH RAIL INV 10 Bn$
1000 T..2000 PASS...600 KMPH 20,000 HP/ 167 Lit VOLUME...667 Lit?Hour
CHENNAI-MADURAI...500 KM 1 Hour..FARE $5...
NOW FAST TRAIN 8 Hrs..5$ ; BUS 6$..10 Hrs
INCOME 2000*600/100*7200= 43.20 Mn4/Yr
NET = 43-13= 30 Mn$/Yr...ROI...30/10=300 %
ANDY DESIGN
DOUBLE SPEED, 1/3 FUEL FOR SAME TON-HP
360 KMPL BIKE, 60 KMPL CAR, 30 KMPL TRUCK
600 KMPH RAIL,
330, 660 KNOTS SHIP, FERRY, VLCC
FARE $1/100 KM
1000 GRT FERRY....
CHENNAI-SINGAPORE...660 KN..4 Hrs..FARE .$40..S$60..INR 2000
INV ...5 Mn$...RETURN 2000*1200/100*7200= 172.80 Mn$/Yr
GLOBAL COOLING CER 10 BnT/Yr
INVESTMENT 800 Bn$....RETURN 5400 Bn$/Yr...15 Bn$/DAY
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WEIGHT , DISTANCE ARE BASICS OF ALL TRANSPORT SPEED, COST OF TRANSPORT ARE WITH OUR PERVIEW, CAN BE DESIGNED FOR STD Wt, DIST VDF=W*S/HP FOR A TRANSPORT SYSTEM W , VDF ARE CONSTANR HP, SPEED VARY PROPORTIONATELY AS VDF/W=S/HP FOR 2 T CAR VDF= 2, W =2 HENCE VDF/W=2/2=1= SPEED/HP=1 HENCE SPEED=HP NUMERICALLY FOR 20 T TRUCK VDF/W=8/20=0.4=S/HP SPEED=0.4* HP TON-KMPL WILL BE TRUE INDICATOR OF AUTOMOTIVE EVERY EFFORT MUST BE FOR LOW TON-KMPL , LOW KMPL/T ANDY ENGINE DEVELOPS SAME HP IN 1/3 FUEL BY DESIGN ANDY BEARING REDUCES ROLLING FRICTION TO HALF, DOUBLE SPEED COMBINING ANDY ENGINE & ANDY BEARING U GET 6 TIME KMPL , DOUBLE SPEED FOR SAME TON-HP Nor Asp REDUCES CO2e L/KM TO 1/6 CAR 2 T 100 HP/600 CC 250 KMPH 105 KMPL CO2e 22 g/km 248 MPG COST NORMAL
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WHITE LETTERS IN RED BACKGRUND??
COLOUR BLIND
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During this period Car manufacturers need to price their cars competitively to attract consumers without compromising on quality and features. Too many small cars are not going to solve the problem either, the future lies in fuel-efficient or alternative-fuel powered cars. Hybrid cars and electric cars for a greener environment. |
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Mr. Sudhish Chatterjee could you please enlighten me further more. What change have you personally seen over the past 14-18 months? Recession must have slowed down all processes including sales, how important is branding & adverstising at such times? how advertising messaging and brand management has changed with recession in mind & what is your views on the immediate future of the 4 wheeler automobile sector in India. Moreover, how does communication ‘play a major role in your business? What are the strategies and patterns? It would be really great if you could please help me. I shall be so thankful to you. If its comfortable for you then could you please give me your contact no. or e-mail id so that I could communicate with you further. Others please also help |
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It was just that India was getting into increased number of production and sales. I was thinking to consider in 2 areas parallely. FIRST, is within manufacturers capability. his includes the performance,reliability,safety and endurance of product which are designed working design and geographical requirement. he location of sub vendors and cost per components and reducing muda ( Waste ) in every aspect, giving employees an incentive for good kaizan initiation, could keep the cost of the product and quality the best. he company should participate global marketing and sales network and schemes. SECOND, Government should help to keep tax laws and infrastructure as tool to support automotive companies and to make them invest for new and greener techonologies. The FIRST point is more important and i honestly feel this will run the industry with a good market share and fight any tight recession( economic situation ). Stay lean to be flexible and agile.
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VEHICLE KMPL RF FUEL NET KMPL TON - . . Nor ADV ADV ADV Andy KMPL . CAR 2T 12.5 3.66 3 11 137 275 TRUCK 20T 5 3.66 3 11 55 1100 RAIL 1000 0.15 2.86 3 8.58 1.287 1287 SHIP 1000 0.25 2.00 3 6 1.50 1500 |
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ANDY ENGINE Nor Asp
PETROL ENGINE 150 HP / 1000 CC
DIESEL ENGINE 120 HP / 1000 CC
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One of the most important thing that will address the recession is increasing efficiency of all tasks carried out at organisation. Particularly in the time of recession of we should use small core team which would support lot of activities on project rather than having various departments inorder to have quick turn-around of activities.
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PLEASE MAKE NUMERICAL STATEMENT
PLEASE PROPOSE A METHOD T FOR HIGHER EFFICIENCY
PLEASE DO NOT MAKE WAUGE STATEMENT
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