Can India Become A
Global Automobile Manufacturing Hub?
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Industry representives hoped for quick execution of basic infrastructure
projects and a positive business environment to attract foreign investment and
sustain industry growth. Some of the other incentives sought by the industry
were tax holidays on investments, single-stage clearances for foreign
investment, import duty concessions, etc. There was also a demand for
rationalization of existing labor laws and building the necessary infrastructure
for supply of skilled manpower.
Some experts opined that the Indian automobile industry had to build economies
of scale, lower manufacturing costs, attain higher labor and capital
productivity, and maintain high quality standards in order to become a global
hub for automobile manufacturing.
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India was also expected to face competition from countries such as China and
Thailand with regard to attracting foreign investment in the automobile sector.
ADDITIONAL READINGS AND REFERENCES
1. "India is expected to become a major hub for the manufacture of small cars
and hence Maruti Udyog Ltd (MUL) focuses on smaller vehicles," http://www.indiadaily.com,
July 24, 2006.
2. "Auto sector could grow to $145 b by 2016: Minister," www.thehindubusinessline.com, September 08, 2006.
3. "Auto majors line up big investment plans," www.thehindubusinessline.com,
September 08, 2006.
4. Paran Balakrishnan, "Global giants in small-car race," http://subs.nzherald.co.nz,
September 12, 2006.
5. "India a global auto manufacturing hub?," http://economictimes.indiatimes.com,
September 19, 2006.
6. "Draft Automotive Mission Plan 2006-2016," www.siam.in, September 2006.
CASES ON RELATED TOPICS
Tata Indica: The Making of the Small Car
Operations Management at Maruti Udyog
India - A Global Manufacturing HUB
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