Case Study on the Rise of the Indian Automotive Industry

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Case Study on the Rise of the Indian Automobile Industry Anthony Bradley Brown Mid-Continent University MGT 6013; DL 4M Case Study on the Rise of the Indian Automobile Industry The purpose of this document is to assess the growth of the automobile industry in India, and to discuss some of the advantages and disadvantages of manufacturing automobiles on a large scale in this region. As the car manufacturing industry in this region grows, it is important to understand why companies would be attracted to this region, and what can be done to attract even more companies, making the manufacturing process more equitable for all involved. The advantages of both Nissan and Hyundai investing in the same region are herein discussed, as…show more content…
The drawback in Japan, however, would be higher costs of wages and higher costs associated with exporting. Certain European countries might also be attractive in that shipping and exporting costs would be lower. This is due to the facility being located more centrally to its target market. According to Hill, India was exporting almost one third of its cars by the year 2008, and plans to export more (Hill, 2013; P. 576). Being centrally located could greatly reduce distribution costs. Chennai Evolution over Time As the automotive industry in Chennai continues to grow, it is expected more and more Japanese factories manufacturing parts will be located there. This will lead to a more stable economy for India, and perhaps an increase in domestic car sales, as well as exports. “For example, under the guidance of teams of engineers from Nissan, the Indian parts supplier Capro, which makes body panels, has built a new factory near Nissan’s Chennai facility, using the latest Japanese equipment. Workers there have also been trained in the Japanese practice of kaizen, or continuous process improvement” (Hill, 2013; P. 576-577). With the greatest challenge to automakers being getting needed parts, it is expected that as the industry continues to grow, Chennai could become one of the greatest automobile powerhouses in the world. This suggests that a manufacturer’s

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