The automaker’s small-car offerings were not competitively priced owing to a low level of parts localization and the need to import relatively costly components, exacerbated by the depreciation of the Indian rupee against the U.S. dollar.
The automaker’s 10 brands combined claim 21.6% of the local market, second only to Maruti Suzuki, and it is India’s leading exporter with a 40% share of sales. It is utilizing nearly all of its annual 640,000-unit capacity.
Chinese components are priced so low that Indian manufacturers are seeking anti-dumping duties. But India also has a free-trade agreement with the ASEAN trade bloc that allows duty-free imports of parts made in those countries.
Delaying the plant will allow Maruti Suzuki to draw on its cash reserves and invest in marketing and sales, expanding the sales network and ‟making the right models,” Bhargava said during the automaker’s September general meeting.
Just 35% of the light-vehicle market in 2007, diesel’s share peaked at 58% in 2013. Diesels’ current share is 53% but that is expected to come down to 35% by the year 2016, turning a full circle over a decade’s time.
Tata’s weaknesses include product planning that fails to recognize changing markets, dealers’ lack of understanding of what buyers want and low profit margins. Management has given no clear indication that it is addressing these issues.
The plan includes redesigned versions of the S80, V70, XC60, S60 and V60, as well as new V40 and XC40 for the U.S. By the time Volvo’s product offensive is complete four years from now, no vehicle in the lineup will be more than four years old....More
Today’s auto-industry executives must connect Silicon Valley and Detroit, as well as address entirely new dimensions of safety concerns, such as how to protect their customers’ privacy and data....More