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The annual SIAM (Society of Indian Automobile Manufacturers) conference held recently shed light on the way forward

for the automotive industry as a whole. While the current slow down in the market is of concern, the industry has outlined the way forward towards a more sustainable model. Vikram Gour reports.

The Indian automotive industry is once again witnessing a solid slowdown. The cause of this decrease in sales has been attributed to the rise in fuel costs as well as higher interest rates offered by financial institutions. While automobile manufacturers continue to push for growth by launching new products the general atmosphere amongst the top companies is that there is only so much that they can do. To bring about a turn around, the industry will have to usher in bigger changes and cannot expect a few discounts and deals to aid the

it is highly probable that the industry will manage a 10-12 per cent growth this year. the industry is calling for measures to reverse the slowdown trend. Montek Singh Ahluwalia. With a lackluster performance expected from the festive season. While economic growth for the 12th Plan was set at 9 per cent.process. which normally witnesses a robust boost in sales across manufacturers. Planning Commission. Right now they are considering an 11-13 per cent growth. which is nowhere near what the initial expectations were for this fiscal.5 per cent. however this will only be clear by the end of the festive season in October. Even SIAM. who addressed the gathering at the annual SIAM conference stated that this was unfeasible and the reality would be around 7 to 7. which earlier predicted a sales growth figure between 12-15 per cent for this fiscal has had to revise their outlook. . The automotive industry’s woes mirror the current status of the country as well. Most four wheeler manufacturers are of the notion that the festive season is not going to bring in the numbers that were expected due to the fuel and finance rate hike. In fact the targets set for the 12th Plan are going to be revised next year after taking into consideration current trends. Deputy Chairman. In fact. He did add that this slowdown has been triggered by a global scenario and over the next few months it is possible that the figures might change.

Indian industry is developing a number of products that are suitable for the developing market and these products find relevance in other developing markets as well. In fact India has a vehicle density of 15 cars per 1000 people. the fact of the matter remains that the Indian market is still one of the most sought after developing markets in the world thanks to the growth potential that still exists. Over the last decade.While the current situation doesn’t paint a bright picture. the automotive industry is bullish about the future and is looking at further global re-alignment in order to bring about a paradigm shift in mobility for the sub continent. India has been playing catch up with the western markets. Even if our growth rate dips. Today India is on a brink as the West is weak and India is still strong. This is helping fuel . Further to this. while countries such as the United States of America have a density to the tune of 800 cars per 1000 people.

Honda CR-V was adjudged the ‘SUV of the Year’ by NDTV Profit Car & Bike and Overdrive and also won the ‘Best Driver’s Car’ award by CNBC TV-18 Autocar Auto Awards in 2007.exports and the industry has benefited from this over the last few years and this trend continues to be a strong pillar of growth. The Honda CR-V is sold as a Completely Built Unit (CBU) import and is available on confirmed order basis for the customers. The Honda CR-V was first introduced in India in July 2003. Developed markets are looking at the developing world to boost their growth and because of this. Honda Siel Cars India has a strong sales and distribution network spread across the country. HSCI . Honda launched a refreshed version of the 3rd generation CR-V in November 2009. The all new 3rd generation CR-V was introduced in India in November 2006 which offered its customers a distinctive combination of ‘the comfort of a sedan with the thrills of a SUV’.The new Honda CR-V offers its customers a distinctive combination of refined styling and high quality. The Honda CR-V is available in 2. a synergy is materializing which has the potential to pave the way forward globally. The network includes 127 facilities in 79 cities.4L MT /AT Real-time 4WD. It went on to become the segment leader since its launch winning several awards for itself.0 L .MT 2WD and 2.

Japan and Siel Limited. to the Indian customers. 76%. The company’s second manufacturing facility is in Tapukara. with an investment of about Rs 1.dealerships are based on the “3S Facility” (Sales. apart from its established qualities of durability. Spares) format. The annual capacity of this facility is 100.000 units per annum. Honda Siel Cars India Ltd.). with a commitment to providing Honda’s latest passenger car models and technologies. This facility is spread over 600 acres and will have an initial production capacity of 60.. 74% and 28% respectively. offering complete range of services to its customers.P in 1997.000 sq. m.000 units. U. The green-field project is spread across 150 acres of land (over 6. Service. Honda Civic and Honda Accord which are produced at the Greater Noida facility with an indigenization level of 77%. a Siddharth Shriram Group company. Honda City. HSCI’s first state-of-the-art manufacturing unit was set up at Greater Noida. reliability and fuel-efficiency.000 crore. (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co.. Ltd. The total investment made by the company in India till date is Rs 1620 crores in Greater Noida plant and Rs 784 crores in Tapukara plant. . The first phase of this facility was inaugurated in September 2008. Honda’s models are strongly associated with advanced design and technology.00. The company’s product range includes Honda Jazz. Rajasthan. The CR-V is imported from Japan as Completely Built Units.

First.1%. Honda's product lineup consists of mostly small to mid-size. Honda. The Civic and the Accord were in the top five list of sales. over the last ten years. including the Detroit Big Three and Toyota. as these companies reduced their profitability forecasts.[16][17] In November 2009 the Nihon Keizai Shinbun reported that Honda Motor exports have fallen 64.S.As the center of Global Honda. and Toyota. in that they can be easily retooled to produce any Honda model that may be in-demand at the moment. The economic crisis has been spreading to other important players in the vehicle related industries as well. highly fuel-efficient vehicles. Honda's sales were up almost 20 percent from the same month last year. Honda reported a 1% sales increase while its rivals. Honda has designed its factories to be flexible. Nissan.[14][15] Analysts have attributed this to two main factors. economy in June 2008. 948–1973 – Soichiro Honda  1973–1983 – Kiyoshi Kawashima  1983–1990 – Tadashi Kume  1990–1998 – Nobuhiko Kawamoto  1998–2004 – Hiroyuki Yoshino  2004–2009 – Takeo Fukui  since 2009 – Takanobu Ito  HSCI – Takashi Nagai. have reported double-digit losses. current market position  With high fuel prices and a weak U. were still not immune to the global financial crisis of 2008. Secondly. Nonetheless.[18] . operations in Japan are honing Honda’s edge in advanced technology and evolving it to other parts of the world.

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