Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

Forty years ago when Peter Drucker phrased the auto industry as the ''industry of industries'', little did the carmakers know about outsourcing and technology sharing. Now, when most of the markets are brimming with competition from across the globe, carmakers had no option but to keep their costs low. In this context, Asia first emerged as a manufacturing hub with countries like India, South Korea and China becoming outsourcing destinations. The Indian context is particularly striking as the country opened its doors to foreign automakers only in 1992. After little more than a decade, the Indian automobile industry stood as a shining example of producing low cost cars with international quality norms. From Daimler Chrysler to Ford to Hyundai, most of the global carmakers today see India as the global hub of car manufacturing and component outsourcing. Even indigenous carmakers like Tata Motors and Mahindra & Mahindra have made inroads into the global markets. Recently, Tata Motors reached an agreement with MG Rover of Britain to supply 100,000 of its ''Tata Indica'' to Europe. This case study of India as an automobile hub outlines the plans of global automakers, which rely on India for their manufacturing and outsourcing needs. The case also provides insights into the Indian auto-ancillary industry, which has virtually risen to international acceptance since the liberalisation policy. A structured assignment ''204-037-4'' is available to accompany this case.
Location:
Other setting(s):
1992-2003

About

Abstract

Forty years ago when Peter Drucker phrased the auto industry as the ''industry of industries'', little did the carmakers know about outsourcing and technology sharing. Now, when most of the markets are brimming with competition from across the globe, carmakers had no option but to keep their costs low. In this context, Asia first emerged as a manufacturing hub with countries like India, South Korea and China becoming outsourcing destinations. The Indian context is particularly striking as the country opened its doors to foreign automakers only in 1992. After little more than a decade, the Indian automobile industry stood as a shining example of producing low cost cars with international quality norms. From Daimler Chrysler to Ford to Hyundai, most of the global carmakers today see India as the global hub of car manufacturing and component outsourcing. Even indigenous carmakers like Tata Motors and Mahindra & Mahindra have made inroads into the global markets. Recently, Tata Motors reached an agreement with MG Rover of Britain to supply 100,000 of its ''Tata Indica'' to Europe. This case study of India as an automobile hub outlines the plans of global automakers, which rely on India for their manufacturing and outsourcing needs. The case also provides insights into the Indian auto-ancillary industry, which has virtually risen to international acceptance since the liberalisation policy. A structured assignment ''204-037-4'' is available to accompany this case.

Settings

Location:
Other setting(s):
1992-2003

Related