Despite the recent three year conviction of their global head on February 5, 2007, South Korean car-maker Hyundai is all set to ramp up production in India for its small car designs. When asked about the company’s plans for compacts, Heung Soo Lheem, CEO, Hyundai Motor India, divulged to B&E, “As soon as our new plant comes up, we will bring in a sibling to the Santro.” Earlier, even Rajiv Chaba, President and Managing Director, GM, had confessed to B&E that “if GM gets a 10% market share by 2010,” that would be promising. Interestingly, now even GM, with Chaba’s proprietory “growing lineup statement,” is eying the compact segment with a new found chutzpah through its key product, Spark. But justice would be misplaced, if one were to not mention the spectacular orientation of Indian firms towards exports, both of automobiles and of ancillaries. Small cars already form big shipments from India. Some 17,772 units were exported from India in June 2006 alone (SIAM). Today, exports are increasingly used as a safety valve for excess production. Even the much maligned Tata Motors is investing an estimated Rs.110 billion for expansion, as it enters high potential foreign markets like Russia and China.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
