Indian achievements in auto industry and its effects on defence sector

Discussion in 'Indian Defence Forum' started by Dark Angel, Jan 27, 2010.

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  1. Dark Angel
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    Dark Angel SENIOR MEMBER

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    The automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand

    India has emerged as one of the world's largest manufacturers of small cars. According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki

    In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.[7] Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.[8]

    In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian market and for export.[9] The company said that the plant was a part of its plan to make India the hub for its global production business.[10] Fiat Motors also announced that it would source more than US$1 billion worth auto components from India.[11]

    According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest exporter of cars


    Automobile industry in India - Wikipedia, the free encyclopedia

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  2. Dark Angel
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    Dark Angel SENIOR MEMBER

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    Auto majors vroom into defence sector


    The reasons are clear enough: there is a large market to be tapped. The Indian defence expenditure is slated to touch Rs 1 lakh crore over the next 3-4 years and about 20 per cent of it would be open to the private sector. Much of this amount will be spent for modernising the country’s ageing Soviet/Russian arsenal

    We are awaiting the outcome of our exploratory studies to help us diversify both into the railways and defence sectors,” said Surinder Kapoor, MD, Sona Koyo. He is not willing to divulge any more details.

    “According to the offset plan of the defence ministry, 30 per cent of the value of the orders given to foreign companies and their JVs have to be spent within the country,” says Sulabh Agarwal, analyst, Angel Broking. (In the case of the yet-to-be-decided contract for 126 jet fighters, half of the value must be re-invested in India, according to the defence ministry’s tender guidelines

    Secondly, India can produce them cheap as a result of its lower cost of technical labour. Experts say the manufacturing cost of defence equipment in the country is 15 per cent cheaper than global averages, a key reason attracting foreign companies to get into JVs with Indian auto makers. And three auto makers can leverage their expertise, especially in the large area of defence transportation


    http://www.business-standard.com/india/news/auto-majors-vroom-into-defence-sector/315016
  3. Dark Angel
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    Dark Angel SENIOR MEMBER

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    India has emerged as an attractive hub for making compact cars - the Nano means the world will now accept India’s expertise in design values and frugal engineering’

    The Nano promises to provide a safe and environment-friendly mode of transport to a large segment of the population who, till now, did not have that option. This will give a major fillip to the Indian automobile industry

    So what does Nano mean to the economy at large?

    Employment opportunities to millions in this era of recession not only in manufacturing but in sales, service, finance, insurance etc.

    A boost to the rural economy because this car, along with improved roads, will help increase mobility.
    Empowerment and liberation of women in smaller towns.

    In India over 300,000 auto rickshaws are sold in a year for about the same price as the Nano. The Nano is a substitute for public transport which is safer, far more environment-friendly and convenient
  4. Dark Angel
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    Dark Angel SENIOR MEMBER

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    Something every indian should be proud of check out the comments by a UK journalist :smitten:



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  5. secularguy
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    secularguy BANNED

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    Tata Nano's are now seen not so rarely in most parts of India.
    But ,I am hopeful of Bajaj's Car as well.This car is supposed to be designed,engineered and produced by Bajaj Auto while Nissan,Renault will Market them Internationally.
  6. Dark Angel
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    Dark Angel SENIOR MEMBER

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    Mahindra Defence Systems (MDS), a subsidiary of the Mahindra Group has tied the knot with Whitehead Alenia Sistemi Subacquei (WASS), a subsidiary of the Italy-based Finmeccanica Group, to manufacture underwater weapon systems for the Indian Navy.

    MDS holds 74 per cent equity in the JV, while the rest is with the Italian company. The JV hopes to do a business of over $500 million over the next 5-6 years.

    MDS has also launched new versions of light infantry and armoured vehicles in the market. Anand Mahindra, vice-chairman and MD, Mahindra Group, says: “We will be targeting a market, which would be around $3 billion in size. We intend to be in every segment of the Indian defence industry.” That is why group company Tech Mahindra is developing defence electronics, while another sister concern Mahindra Plexion is concentrating on the aeronautics segment.

    Auto makers say margins in selling defence armoured vehicles are better than just selling civilian products. That is why most auto makers are developing new products in this arena. Chennai-based Ashok Leyland introduced the common gun tower (CGT) and unveiled the beefed-up Stallion 6x6, a heavy vehicle with night vision system that offers visibility through an LCD screen and an infra-red camera even in zero light conditions. In 2007, 172 Stallion heavy vehicles were supplied to the US army.

    And they are not looking at the Indian market alone. The company’s range of defence vehicles is under validation by armies in Thailand, Oman and countries in Africa and West Asia.

    T V Anand, general manager, defence vehicles, Ashok Leyland, says: “For FY09, our exports of defence vehicles should touch $30 million.”
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  7. Dark Angel
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    Dark Angel SENIOR MEMBER

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    Ashok Leyland expands its market further


    Ashok Leyland is one of India’s largest commercial vehicle manufacturing companies and is a part of the Hinduja Group. Ashok Leyland is based in Chennai, India and focuses mostly on the medium and heavy commercial vehicle segment of the market. Enjoying healthy market share and a full range of offers from 18 to 52 seater passenger transport buses, Ashok Leyland is on a steady run towards being a market leader. In fact, eight out of every ten state transport buses running across India are manufactured by Ashok Leyland. Of late, it has entered into a joint venture with Japan’s giant, Nissan as it tries to penetrate the Light Commercial Vehicle (LCV) market.


    Among many other goals, Ashok Leyland aims to expand its operations to penetrate into overseas markets. Included in the company’s plans is to acquire smaller car manufacturers in China and in other developing countries. In fact, recently, it has acquired the Avia truck line from Czech Republic. Called Avia Ashok Leyland Motors s.r.o., this will give Ashok Leyland a channel into the competitive European market. According to the company, in 2008 the joint venture sold 518 LCVs in Europe despite tough economic conditions. Furthermore, the company will expand its product offers into construction equipment, following a joint venture with John Deere. Newly formed in June 2009, the John Deere partnership is a 50/50 split between the companies. The company says negotiation is progressing on land acquisition, and the production plans are in place. The venture is scheduled to start rolling out wheel loaders and backhoe loaders in October 2010.
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  8. Speeder
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    Speeder BANNED

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    Nano's effects on Indian defence sector , eh?

    World's cheapest rifle? World's cheapest artillery shell? ...

    Oops sorry, it must be world's cheapest tank ! :azn:
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  9. Dark Angel
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    Dark Angel SENIOR MEMBER

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    Are u sure u took the right pill today :what:

    The word cheap and your effection for it can be understood :lol:
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  10. SinoIndusFriendship
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    SinoIndusFriendship BANNED

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    Good strategy. That's the best way to enter the European market.
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  11. Trisonics
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    Trisonics FULL MEMBER

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    TATAs new trucks

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    Will we see this in Military Camo?

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  12. Trisonics
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    Trisonics FULL MEMBER

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    Ashok Leyland's 4x4 and 6x6

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  13. Trisonics
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    Trisonics FULL MEMBER

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    [​IMG]

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  14. Trisonics
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    Trisonics FULL MEMBER

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    Mahindra and Force Motors

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  15. Dark Angel
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    Dark Angel SENIOR MEMBER

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    does everyone think that we have an advantage over pakistan in this feild as we can get these monsters for cheap and in larger nos