Thursday, September 13, 2007

Can India make it to the top in automobiles?

Tata Motors along with Maruti Suzuki, Hyundai, Toyota, Mitsubishi, Ford, General Motors, Skoda, Volkswagon, Mercedes are presently competing with each other for the market share in automobiles in India. Hyundai, Maruti and Tata Motors models are presently the top selling ones in the country. how long will this continue ? Will any one company be able to establish it's control over the market and squeeze the others out ?

Let us analyse the situation from a layman's perspective. The middle class is now completely moved over to four wheelers. The upper middle class had completed the transition some time back. The focus of the auto makers are now on the lower middle class wooing them to make the switch from two wheekers to four wheelers and ofering them lot of enticements to do so. The upper middle class have slowly started switching from the medium autos to the expensive, gas guzzling, luxurious ones. Some families even have three automobiles at home. As usual with economic development there is also shortage of parking spaces in housing societies / residences for parking these extra vehicles.

Will Tata Motors ever make it to the top three slot in the world by effecting a merger / acquisition of General Motors. there was a rumour onec about that possibility immediately after the Corus steel takeover by Tata steel. If that happens there will be a great consolidation in the automobile market in the world.

The present world leaders are Toyota, GM, Ford and Daimler Chrysler in that order. When will Tata make it to the top is a big question for which Indians are looking for an answer. Tata's present offering, the Tata Indica, petrol, diesel version and the Indigo coupe and Mareena hatchback models are top selling models in the market.

Let us wait and see.

George easaw

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