Can India Become A Global Automobile Manufacturing Hub?



Case Code : CLOM004
Publication date : 2009
Subject : Operations
Industry : -
Length : 02 Pages
Price : Rs. 100

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Key words:

India, manufacturing, automobile industry, small car, Toyota Motors, General Motors, Volkswagen, Hyundai, Maruti Suzuki, Draft Automotive Mission Plan 2006-2016, foreign direct investment, China, Thailand


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India is expected to become the global manufacturing hub for automobiles. Companies like Toyota Motors, General Motors, Volkswagen, Hyundai, and Suzuki have invested millions of foreign direct investment in building manufacturing facilities.


On December 19, 2006, the President and CEO of Honda Motors Co. Ltd. said that the company would launch a small car in India and that by the end of 2010, it planned to manufacture and sell over 150,000 cars in India on an annual basis. Honda Motors was currently in the process of doubling its production capacity at its Greater Noida plant to 100,000 units and further planned to set up a greenfield plant for the small car.

In 2006, Honda Motors was one of the several automobile companies that had announced investment plans to expand or establish new manufacturing facilities in India. Global automobile majors like Toyota Motors, General Motors, Volkswagen, Hyundai, and Suzuki were some of the companies keen to make India an export-base for their cars.

The strong domestic automobile market, increase in purchasing power of the middle class, consumer credit and financing facilities, well-developed auto component industry, availability of trained manpower and raw materials at a competitive cost were some of the factors that attracted these global companies to invest millions of dollars in India...

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