Tata Motors gets into battle gear

[Contrarian]

Tata Motors gets into battle gear
Ajoy K Das
Sunday, April 29, 2007 19:51 IST




KOLKATA: Poised to storm the passenger car segment with its Rs 1-lakh people’s car, Tata Motors is readying for more muscular offerings. The company has started a programme for the production of armoured vehicles for Indian and global military markets.

Based on its existing truck and utility vehicle platforms, Tata Motors aims to produce armoured vehicles for troops and personnel transportation. As in any defence production, Tata Motors, too, is keeping the programme under wraps, including numbers and investments.

But, sources say that, as an existing supplier of trucks for the military, Tata Motors’ entry into the armoured vehicle segment was a logical move to be part of the Indian government’s efforts to broadbase defence procurement from the private sector as also tap the burgeoning demand internationally. /R

A Tata Motor spokesperson said that a commercial programme for armoured vehicles had been initiated, but it was too premature to disclose the specifics.

Though it could not be confirmed, industry sources indicated that Tata Motors could be working with the Defence Research and Development Organisation (DRDO), since future supplies will, in any case, have to be certified by DRDO before firm orders are executed.

Significantly, the DRDO which, till now, only funded public sector enterprise for R&D for defence production, has relaxed norms by setting aside a corpus to fund the private sector as well.

Tata Motors sources said that while significant in-house research has already been done on the armoured vehicle technology, the company’s existing and future truck platforms would be the framework for entering the defence market.

It is likely that the Novus truck, developed by Tata Motors’ Korean acquisition — Tata Daewoo Commercial Vehicle Limited (TDCV) — will be developed as an armoured troop carrier. Tata Motors and TDVC are also jointly collaborating to unveil a ‘global truck’ in 2008, which, too, could be extended for the production of armoured vehicles.

Automobile industry sources said that the Tata Motors initiative to extend its presence in military supplies should be viewed against the backdrop of the Indian government’s recent policy initiatives to increase defence procurement from the private sector.

While the shopping bill of the Indian armed forces in 2007-12 is estimated at $100 billion, the government has even allowed 26% foreign direct investment (FDI) in joint ventures for defence production.

Recently, Union defence minister A K Antony urged the Indian private sector to take advantage of the ‘30% offset clause’, under which any foreign vendor will have to invest 30% of order value for the co-production or purchase agreement with an Indian defence producer.

http://www.dnaindia.com/report.asp?newsid=1093739&pageid=2

 

[Bull]

They cant make a proper SUV or MUV, god knows what they are going to come out with under the name of ' armoured vehicles'

 

[Cheetah786]

Tata are in too many boats.old days of monopoly are gone.they will have to work hard and i mean really hard to compete with big boys.
I have seen there vehicles i quite frankly don't think they have what it takes to compete.unless indian government is going to buy regardless of the quality(which i doubt)they have a long way to go before they can produce some thing worth while.
malaymishra123 that 1 lakh car.is it actually a car.i never seen it so iam interested to no how could it be possible to produce a vehicle for 40 to 50,000 Indian rupees and make it worth for some one to buy it.

 

[BATMAN]

Tata are in too many boats.old days of monopoly are gone.they will have to work hard and i mean really hard to compete with big boys.
I have seen there vehicles i quite frankly don't think they have what it takes to compete.unless indian government is going to buy regardless of the quality(which i doubt)they have a long way to go before they can produce some thing worth while.

Now a days, It is not so difficult to produce quality looking cars. One just need an automated production and assembly line, there are lot of suppliers around the world for such process, only engine is a comapritively complicated task.
TATA is now long enough in the bussiness and I'm sure they definately know how to do it all and very well they know the demand of Indian market, too.
This is also true that today they do not have same monoply on Indian auto sector as they had before but they will definately survive in this new competitive India.

 

[Cheetah786]

Now a days, It is not so difficult to produce quality looking cars. One just need an automated production and assembly line, there are lot of suppliers around the world for such process, only engine is a comapritively complicated task.
TATA is now long enough in the bussiness and I'm sure they definately know how to do it all and very well they know the demand of Indian market, too.
This is also true that today they do not have same monoply on Indian auto sector as they had before but they will definately survive in this new competitive India.

Brother just 1 robot cost over a Million US dollars.if there plants are automated they cant produce a car for 40 to 50,000 Indian rupees.
Indian government plans to have up to 25million Indians working in auto sector.so there is no way they would allow to have robots working in those plants.and having those robots doesn't mean your cost of business goes down.thats why even the big guns only use robots where there is danger to human health i.e paint shops.when powder is converted to metal to make parts for inside the engines and transmissions.or when melted metal is converted into moldings for engine parts.those robots are not cheap to buy and not cheap to operate by any imaginations.
demand in Indian market is no doubt there .but thats why all the big guns are there.To take the piece of that pie.that once belong to TATA.
engines on now a days vehicles are far from being simple.we wont even go towards transmissions and other goodies in the car.
Monopolized business can never compete in the open business market.
Pakistan's most businesses are monopolized.thats why when there is any open market concept comes into play there.lets just say there will be to hell to pay.before things gets settled.(sugar cartel.cement cartel.textile cartel to name the few):wall:

 

[Adux]

Cheetah,

The profitability of the 1 Lakh car, is in its mass production, Plus you are unaware of Indian Workers Act, Robotics are already in use, in all the car plants. Please do read through the new Indian Labour Act.

 

[PakSniper]

Cheetah,

The profitability of the 1 Lakh car, is in its mass production

That's what I was going to say, you beat me to it.

 

[Bull]

Tata are in too many boats.old days of monopoly are gone.they will have to work hard and i mean really hard to compete with big boys..

Well this was said in 1960s,70s and on.....and now in 2007 they are stronger than ever. Worlds second largest tea maker, worlds fifth steel producer, worlds 8 largest auotmobile maker...

I have seen there vehicles i quite frankly don't think they have what it takes to compete.unless indian government is going to buy regardless of the quality(which i doubt)they have a long way to go before they can produce some thing worth while..

Their auto products are not at all clean, fi and finish is bad, engines arnt refined. But still they sel a lot in India, they jst get their overall packaging right.

Wrt defence products, they have always been supplying trucks to IA and guess its all been working well.

malaymishra123 that 1 lakh car.is it actually a car.i never seen it so iam interested to no how could it be possible to produce a vehicle for 40 to 50,000 Indian rupees and make it worth for some one to buy it.

Everybody is wondering and thats why its such a prestigeous and challenging project.
Well to make you believe, Toyota also has entered fray to produce a 1lac car.

 

[Bull]

Brother just 1 robot cost over a Million US dollars.if there plants are automated they cant produce a car for 40 to 50,000 Indian rupees.
Indian government plans to have up to 25million Indians working in auto sector.so there is no way they would allow to have robots working in those plants.and having those robots doesn't mean your cost of business goes down.thats why even the big guns only use robots where there is danger to human health i.e paint shops.when powder is converted to metal to make parts for inside the engines and transmissions.or when melted metal is converted into moldings for engine parts.those robots are not cheap to buy and not cheap to operate by any imaginations.
demand in Indian market is no doubt there .but thats why all the big guns are there.To take the piece of that pie.that once belong to TATA.
engines on now a days vehicles are far from being simple.we wont even go towards transmissions and other goodies in the car.
Monopolized business can never compete in the open business market.
Pakistan's most businesses are monopolized.thats why when there is any open market concept comes into play there.lets just say there will be to hell to pay.before things gets settled.(sugar cartel.cement cartel.textile cartel to name the few):wall:

Read about TATA ace, that mini pickup-truck is suppose to be the trail run for the 1 lac car.

 

[Contrarian]

Wow...didnt know Key had bcome a mod...Congratz Key!!
An excellent choice by webby and other mods

 

[Keysersoze]

Wow...didnt know Key had bcome a mod...Congratz Key!!
An excellent choice by webby and other mods

Yeah I am not allowed to lose my temper anymore......

 

[Neo]

Welcome to my world...

 

[Cheetah786]

Well this was said in 1960s,70s and on.....and now in 2007 they are stronger than ever. Worlds second largest tea maker, worlds fifth steel producer, worlds 8 largest auotmobile maker...

could you please list the international companies that were operating with in india against TATA.dont include any imports the duties were so high during those times that i would have been impossible to compete with any home grown automaker.

Their auto products are not at all clean, fi and finish is bad, engines arnt refined. But still they sel a lot in India, they jst get their overall packaging right.

And thats exactly mt point.now that indian people will have a choice.guess who is going to be in trouble with a big T.

Wrt defence products, they have always been supplying trucks to IA and guess its all been working well.

government of india is forcing basically IA to buy from TATA.(also known as lending a helping hand)

Everybody is wondering and thats why its such a prestigeous and challenging project.
Well to make you believe, Toyota also has entered fray to produce a 1lac car

Tell me some thing you are defending the TATA.i lakh car.would you buy 1.or have you baught 1.if you are driving any other brand then TATA.thats speaks volumes.

 

[Cheetah786]

Cheetah,

The profitability of the 1 Lakh car, is in its mass production, Plus you are unaware of Indian Workers Act, Robotics are already in use, in all the car plants. Please do read through the new Indian Labour Act.

Adux please read what i wrote.i clearly said that some jobs that are either dangerous to human health robots must be used.

but here is Intresting article

Entering Ford's manufacturing plant near the South Indian city of Madras (Chennai) feels a bit like travelling back in time.
The metallic noise, the sparks, the industrial smell: here is a good, old-fashioned car factory, the kind whose closures in the West - along with the loss of thousands of jobs - used to spark industrial strife.

"In Europe, you see robots," explains plant manager Kevin Whipp as he leads the way through the dimly-lit factory. "Here you see people."
India's labour intensive car industry has become a tremendous job creator and as such a crucial driver of economic growth.

Already, some 10 million people are working in factories across India - making cars and motorcycles, tractors and trucks - or in sales and service centres.
And their numbers are set to swell
By 2016, the automotive industry should have created employment for 25 million people in India, according to government predictions, set out in its Automotive Mission Plan. (To put this into context; MG Rover's collapse in 2005 led to the loss of 6,000 jobs.)

For every job created directly by the automotive industry, a further seven are created indirectly in the economy at large, explains Jagdish Khattar, managing director and chief executive of India's best-selling car maker, Maruti Udyog, and a contributor to the report.

Engine for growth
The new jobs that are being created by the automotive industry in India are not all about sweat and muscle on the shop-floor
Leave the noisy factory floor behind and venture into the baking Indian heat, and the Ford plant tells a very different story.

Footpaths lined with palm trees leading into whitewashed corridors make the site resemble a university campus, or a corporate headquarters in Silicon Valley.

Indeed, only about half of the almost 4,000 people employed by Ford India in Madras are blue-collar workers, and even they are highly trained, points out its managing director and president, Arvind Mathew.

"The assembly itself is no longer a non-skilled job," agrees Ajay Dua of the Ministry of Commerce & Promotion. "It still requires a lot of investment and training."

The Indian government predicts that in 10 years, no more than one-tenth of the jobs created by the automotive industry will be unskilled, with some two-thirds of the new jobs being classed as skilled and the remaining classed as managerial or general work.

Ford of India's operations in Madras are a case in point.

In addition to its manufacturing plant, Ford India's IT department serves Ford Motor as a whole, and the group is running the entire group's business invoicing out of Madras.

"With the auto companies, you get so much peripheral growth," insists Mr Mathew.

"The auto industry is just a multiplier, a driver for employment, for investment, for technology. It is a significant engine for the economy.

"It doesn't mean that you're just building cars. You've got the supply base doing their thing. You've got the IT industry doing their thing. You've got the infrastructure, you've got the oil companies."

Serious suppliers

Adjacent to the Ford factory, a separate industrial site has been established by automotive supply firms.

Initially, the suppliers built their businesses on the back of the orders they got from Ford India, though over time many of them have branched out to supply both Ford's divisions in other countries as well as Ford's rivals in India.

You've got this manufacturing base that is diversifying into other areas," observes Mr Mathew.

Indeed, the mere fact that the suppliers were here was a key reason why German car maker BMW opened its assembly plant nearby a few weeks ago.

"Chennai has a developed infrastructure, it benefits from having suppliers nearby and we've been able to hire motivated employees," explains Frank-Peter Arndt, BMW Group board member in charge of production, during a visit to the BMW facility.

This pattern of supplier growth can be seen across India, with indigenous car makers producing vehicles or parts under contract for sale for foreign car makers, or parts makers going directly to automotive groups outside India.

Growing importance

Much of the foundations for the future importance of the automotive industry in India are being laid this year.

A string of companies - including Tata Motors, Maruti Udyog and Mahindra & Mahindra, as well as several global automotive groups - are investing heavily in new manufacturing and assembly plants in automotive hubs across the country.
"2007 is the year of India," insists Norbert Reithofer, chief executive of BMW Group.

"We want to benefit from this growth potential, but we also want to make an active contribution to this growth."

Indeed, collectively the automotive industry is set to have a major impact on India's future economic growth.

Currently, the sector accounts for 5% of India's economic output, but it is set to grow much faster than the rest of the economy. Consequently, by 2016 its output in dollar-terms should have quadrupled, while GDP is expected to have merely doubled.

This will make the automotive sector an ever more important contributor to economic growth in India: by 2016 it should account for 10% of India's GDP, according to the government.

The consequence is a remarkable transformation of India's entire economic landscape.

And just as the country's population is learning to depend on the car, so the government could soon come to depend on the car industry.

http://http://news.bbc.co.uk/2/hi/business/6583203.stm

 

[Bull]

could you please list the international companies that were operating with in india against TATA.dont include any imports the duties were so high during those times that i would have been impossible to compete with any home grown automaker. .

What are you saying mate. They are worlds second largest tea maker competing to international players in intl markets and so is the case with steel. And now in automobiles they have bought over daewoo trucks and is a imp player in South Korean market and also a major player in Spanish bus market thru Hispano ( in whcin they have a stake).

And thats exactly mt point.now that indian people will have a choice.guess who is going to be in trouble with a big T.

They ahve choices and still Indica is the second/largest selling car not for 1 or 2 months but for more than 4 years. their Sumo succeeded and also held itslef againt the onlsought from Toyota and Mahindra. Their products are still bought and sort out in the fierce India markets.

government of india is forcing basically IA to buy from TATA.(also known as lending a helping hand).

What ****? They buy from Al the stag series, they buy from TATRA their multiple independant axis trucks, they buy from Mahindra their armoured jeeps, they buy from Maruthi their gypsy jeeps.

Tell me some thing you are defending the TATA.i lakh car.would you buy 1.or have you baught 1.if you are driving any other brand then TATA.thats speaks volumes.

Why would i want to buy a 1 lakh car, when i can afford a much better car at a higher price. Its targeted at the bike buying segment. TATA think their a huge void between the mass selling 40k-50k bike segment and the 2.1L-3.5L car segment which they want to targetthe car would be priced anywhere between 70k and 200K.