AUTOMOBILE INDUSTRY

The automobile industry in Indiathe tenth largest in the world with an annual production of approximately 2 million unitsis expected to become one of the major global automotive industries in the coming years. A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth. Following the economic reforms of 1991 the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. The monthly sales of passenger cars in India exceed 100,000 units In 1953, the government of India and the Indian private sector initiated manufacturing processes to help develop the automobile industry, which had emerged by the 1940s in a nascent form. Between 1970 to the economic liberalization of 1991, the automobile industry continued to grow at a slow pace due to the many government restrictions. A number of Indian manufactures appeared between 1970-1980.Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. The Indian automotive industry has been facing new challenges due to the rapid changes taking place during the last decade. This article discusses those challenges and initiatives taken by the government to overcome them. The Indian auto industry is changing rapidly. During the last decade, many international auto manufacturers, either by themselves or in partnership with Indian companies, have started manufacturing activities in India. The ancillary industries have also grown in tandem. The quality of production in small- and medium-scale industries has improved to such an extent that they started exporting products to international manufacturers. The major breakthrough of recent years is the unveiling of "Nano" by Tata Motors during the auto expo 2007. This has received worldwide attention and proved that India can not only design an automobile of international standards but also execute the project at a much lower cost through innovative choice of components, materials, engine design etc.

These developments in the auto sector have given new confidence to everyone related to the auto industry and specifically to the government which resulted in the announcement of the Auto Policy 2006-2016 by the Ministry of Heavy Industries. According to the Auto Policy, the Indian auto sector is expected to grow to US$ 216 billion by 2016 and add 2.5 million new jobs to the economy. Every year two to three million people are expected to purchase new vehicles. Several million vehicles and components are expected to be exported to both developed and developing nations. To achieve these goals, it is important that the present GDP growth rate, which is more than 8 per cent, continues to remain at the same level for the next 8-10 years. The government is also giving some concessions to the auto industry. To realize the above growth predictions, it is important to overcome various challenges the industry is facing currently. Two of the foremost challenges are the spiraling cost of fuel and the paucity of highly skilled manpower.

International price of crude oil has crossed US$ 120 per barrel and is rising at an alarming rate. The forecast of market experts that the crude oil price will plateau around US$ 100 per barrel has been proved wrong. The skyrocketing crude oil price rise will affect the economic growth of most of the nations of the world including India. The prospects of India and China of becoming economic superpower will be seriously affected. Also, the rise in oil prices will impact the growth of global automotive industry. Unless the use of alternative fuels increases, it is very unlikely that the situation will change for the better. This necessarily means that more and more investments should be directed towards R&D, establishing mechanisms to translate R&D results into products and their efficient manufacturing. This will also require radical redesigning of engines.

The second major challenge is the creation of highly skilled human resource required for the auto industry. Auto industry, like many other industries is facing severe shortage of skilled technical as well as managerial manpower. This challenge becomes all the more daunting because faults lie at a more fundamental level of training infrastructure and the social perception.

The growth of auto industry in India will be contingent not just on domestic demand, but also equally on exports. Therefore, the present projections will become a reality if thrust is given to original research that will yield breakthrough results. These results help in addressing the current global concerns such as environment, fuel efficiency, need for alternate and renewable fuels and materials etc. This can happen only through a consortium approach where various auto companies and academic institutions work together as in the case of IT hardware industry. The consortium approach should be extended to address the trained human resource shortage as well. The government should act as a facilitator by bringing about necessary changes in the current laws that will encourage private participation. Finally, there should be mechanisms in place that will ensure that there is a balance in the pool of human resources comprising research scientists, managers, engineers, designers, technicians, and skilled and semiskilled workers.

Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. The company's over 25,000 employees are guided by the vision to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.'' Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 6.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company's dealership, sales, services and spare parts network comprises over 3,500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain and South Africa. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. JLR supports two state of the art engineering and design facilities and three manufacturing plants (Solihull, Castle Bromwich & Halewood) in the UK. In 2004, Tata Motors acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production

of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd., has its assembly plant in South Africa at Rosslyn, north of Pretoria, in the Gauteng province of South Africa. The plant can assemble, from semi knocked down (SKD) kits, light, medium and heavy commercial vehicles ranging from 4 - 50 tonnes. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia and South America. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal. The foundation of the company's growth over the last 65 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 4,500 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than twowheelers being manufactured in India today. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint.

In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. In October 2010, Tata Motors launched the Tata Aria, the first Indian four-wheel drive crossover. The Tata Aria redefines several benchmarks with its design and technologies, offering class leading features that take comfort and safety to a new height. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas employability, education, health and environment. The activities touch the lives of more than a million citizens. The company's support on education and employability is focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative health care. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Products of tata

Tata Safari Storme Tata Motors is one of the best recognized Indian car brands and is geared up to surprise its consumers with a brand new offering, its new generation Safari, named as Tata Safari Storme. This, rules out all the claims that it will be called Merlin which was only used as its codename. Safari Storme made its debut at Indias biggest Auto show, Auto Expo 2012 organized at Pragati Maidan, New Delhi from 7th January to 11th January 2012. The new SUV is basically a nicely updated and enhanced version of Tata Safari. The next generation Safari had been testing since early 2010. However, it is not sure so far as to where exactly it will be positioned price wise, but the update will be given soon by the firm. Our price quote for new Safari Storme is Rs 10 lakh. Tata Safari Storme is a perfect answer to Mahindras SUV, the XUV 500. The SUV will feature the same masculine 2.2.Litre of DICOR diesel engine that would churn out peak power of 140 BHP along with 320 Nm of maximum torque. The engine is coupled with a revamped and refreshed G76 MKII-5 speed manual transmission for better gear shifts. The icing on the cake is that Tata Storme will be offered in a four wheel drive version accompanied with a low gear ratio that would be made available in the top variant of Tata Safari Storme. Visually, this brand new SUV has been given a major makeover and the interiors have also been updated substantially. When heading inside the new Tata Safari Storme, the dashboard is intelligently designed with ample of faux wood that makes it look subtle and sophisticated and the quality of the upholstery is high-class. Tata Motors is well aware of the fact that Indian consumers give as much weightage to the interior comfort of the car as to the engine specifications. The exteriors of Tata Storme have been toned down from being much masculine to more gentleman now. This is done to lure consumers and to show them that Safari Storme is actually the updated version of Tata Safari and doesnt feature the old design. The exterior of all new Tata Safari Storme comprise of refurbished headlamps along with new design at the front end that makes the SUV look more up to date and fashionable. Fresh wide grille, new wraparound headlamps with projectors, thick chrome band on radiator grille, newly designed front bumper with round fog lamps are the elements of new face. On the other hand, the rear end got a major cosmetic makeover to make it different from Tata Safari. This time around, Tata Motors has its hopes high regarding the sales figures of Tata Safari Storme. Earlier too, Tata Safari was one of the best selling cars by the company and with the next gen Storme; the company aims a little higher. The consumers in the country are eagerly waiting for the new Tata Safari Storme. This SUV will lock horns with the recently launched Mahindra XUV 500, which has been receiving raving reviews since the time of its launch. Therefore, its currently impossible to predict whether or not the Safari Storme will be able to take over the Indian car market. Price wise, the company hasnt revealed the exact price range of Tata Storme, but rumour has it that the new Tata Safari Storme will be competitively priced thereby giving the Indian consumers an ease to purchase it.

The Tata Nano is a city car manufactured by Tata Motors. One of the smallest as well as lowest powered (35ps) cars in the world, it was designed to be the cheapest car in India aimed mainly at the lowest price segment in the Indian domestic market.The Nano sold in India is a 624cc, rearengine (for a less complex and hence cheaper transmission), manual transmission, fourpassenger, four-door car. The car lacks power steering and safety features like air-bags and ABS. The car was launched in the Indian market in March, 2009.[ with a pre-launch price offer of 100,000 (US$ 2100). Among other reasons, new emission regulation forced Tata to refine the engine with a higher price tag. Indigo Sedan (2002-2009) In 2002, Tata introduced India's competitive indigenous sedan: the Indigo. Designed in-house, it is a sedan version of the Tata Indica, with which it shares a large number of parts. Launched with a Turbodiesel and Petrol engines, An intercooled 'TDI' Engine, and Dicor engines were added. A minor redesign was done in 2006 which added dual chamber headlamps and different bumpers. It was superseded by Tata Indigo Manza in 2009. ]Indigo Marina (2004-2010) The station wagon version called the Indigo Marina (called the Indigo SW in export markets) was unveiled at the New Delhi Auto Expo 2004.The various advance features embedded to Indigo Marina variants are front and rear cabin lamp with spot reading lamp, HVAC system, 4 spoke wheel, aluminum gear shift knob, power windows, body colored bumpers, roof rails, rub rails on door, full wheel covers, digital clock, retractable luggage cover, side impact beams, collapsible steering column. As of 2010, the production of the Marina has been cut back, and the vehicle is no longer readily available in most Tata dealerships. ]Indigo XL (2007-present) The Long Wheel Base Version called the Tata Indigo XL went on sale in January 2007. It is the long-wheelbase version of the Indigo sedan. It has a 200 mm (7.9 in) stretched wheelbase and a 101 hp engine.The Petrol model has MPFI 16 valve twin cam engine,whereas the diesel variant features a DICOR engine developed in-house. Some features are powered front seats (driver and passenger), rear air conditioning console with separate controls, all four power windows with auto power down function, and car phone.More to add Tata Indigo XL is also equipped with excellent high end characteristics like 32 bit microprocessor , 1396 cc , 16 valve engine, Power of 100 PS (74 kW; 99 hp) , 200 mm (7.9 in) extended wheelbase , Fuel tank capacity : 42 L (9.2 imp gal; 11.1 US gal)

[editIndigo CS (2008-present) Tata launched the Tata Indigo CS at the 2008 Auto Expo in New Delhi. CS stands for compact sedan and is the world's shortest sedan. The Indigo CS is subjected to low excise duty. There are three models each in petrol and diesel version. Indigo CS petrol has a 1.2 litre, 65 PS (48 kW; 64 hp), MPFI engine variant and a 1.4 litre TCIC engine for the diesel version. The Indigo CS was initially launched with the Indica Grille and Headlights, and with the Indigo Dual chamber headlights and grille in 2009. A DiCOR option was also added.In 2010, it received a new BS-4 compliant Common rail CR4 engine and upgrades in technology class and design, under the name Indigo CS e-series. Tata Sumo Victa Turbo DI In later part of the 2007, Tata Motors launched the upgraded version of the Spacio Gold Plus variant. Christened as Sumo Victa D, the power-train was carried over from the Spacio and the body styling and interiors were carried from Sumo Victa viz the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle. This model comes in 7 and 9 seater variants and is very much popular with private transporters & contract taxi vendors because of its lower cost and good fuel economy. Sumo Grande (2008-2010) Tata launched the Sumo Grande on January 10, 2008 powered with a new generation 2200 cc 120 bhp (89 kW; 122 PS) DICOR (Direct InjectionCommon Rail) engine. It features completely different body work. It lies below the Tata Safari in Tata's product portfolio. The Sumo Grande was designed in the UK by Concept Group International LTD. Sumo Grande MK II (2010) It is an upgraded version of Sumo Grande. The Grande MK II seeks to deliver added value to customers through substantial changes in the exteriors and interiors combined with improvements in drivability, ride and handling and comfort. The exteriors have been accentuated by a new chrome lined grill, side rub rails with chrome inserts and indicators on ORVMs. The interiors have been refreshed to give the vehicle a completely new, contemporary look with a two tone theme complemented by a new faux wood centre console and new fabric upholstery.The changed drive ratio in the Grande MK II gives a boost to low speed performance in city driving conditions. While a modified suspension ensures a comfortable ride, particularly for second and third row occupants, optimised anti-roll bars reduce body roll

Fiat S.p.A., (Fabbrica Italiana Automobili Torino) (English: Italian Automobile Factory of Turin), is an Italian automobile manufacturer based in Turin. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli. During its more than a century long history, Fiat has also manufactured railway engines and carriages, military vehicles, and aircraft. As of 2009, the Fiat group (not inclusive of its subsidiary Chrysler) was the world's ninth largest carmaker and the largest in Italy. Fiat-based cars are built around the world. Outside Italy, the largest country of production is Brazil, where the Fiat brand is the market leader. The group also has factories in Argentina and Poland and a long history of licensing production of its products in other countries. It also has numerous alliances and joint ventures around the world, the main ones being located in Italy, France, Turkey, Serbia, India and China. Agnelli's grandson Gianni Agnelli was Fiat's chairman from 1966 until 1996; he then served as honorary chairman from 1996 until his death on 24 January 2003, during which time Cesare Romiti served as chairman. After their removal, Paolo Fresco served as chairman and Paolo Cantarella as CEO. Umberto Agnelli then took over as chairman from 2003 to 2004. After Umberto Agnelli's death on 28 May 2004, Luca Cordero di Montezemolo was named chairman, with Agnelli heir John Elkann becoming vice chairman (at the age of 28), and other family members also serving on the board. At this point, CEO Giuseppe Morchio resigned, and Sergio Marchionne was named to replace him on 1 June 2004. In September 2010, shareholders approved a plan to split Fiat's capital goods businesses from the group. Agricultural and construction equipment manufacturer CNH Global NV, truck maker Iveco, and the industrial and marine division of Fiat Powertrain Technologies were spun off into a new group on 1 January 2011. The parent company, Fiat Industrial S.p.A., was listed on the Milan stock exchange on 3 January 2011. Giovanni Agnelli founded Fiat in 1899 with several investors and led the company until his death in 1945, while Vittorio Valletta administered the firm's daily activities. Its first car the 3 CV (of which only eight copies were built, all bodied by Alessio of Turin)] strongly resembled contemporary Benz and had a 697 cc (42.5 cu in) boxer twin engine] In 1903, Fiat produced its first truck. In 1908, the first Fiat was exported to the US. That same year, the first Fiat aircraft engine was produced. Also around the same time, Fiat taxis became somewhat popular in Europe By 1910, Fiat was the largest automotive company in Italy a position it has retained since. That same year, a plant licensed to produce Fiats in Poughkeepsie, NY, made its first car.

Owning a Fiat at that time was a sign of distinction. The cost of a Fiat in the US was between $3,600 and $8,600, compared to US$825 the Model T in 1908. Upon the entry of the US into World War I in 1917, the factory was shut down as US regulations became too burdensome. At the same time, Fiat had to devote all of its factories to supplying the Allies with aircraft, engines, machine guns, trucks, and ambulances. After the war, Fiat introduced its first tractor, the 702. By the early 1920s, Fiat had a market share in Italy of 80% In 1921, workers seized Fiat's plants and hoisted the red flag of communism over them. Agnelli responded by quitting the company. However, the Italian Socialist Party and its ally organization, the General Confederation of Labor, in an effort to effect a compromise with the centrist parties ordered the occupation ended. In 1922, Fiat began to build the famous Lingotto car factory then the largest in Europe which opened in 1923. It was the first Fiat factory to use assembly lines; by 1925, Fiat controlled 87% of the Italian car market. In 1928, with the 509, Fiat included insurance in the purchase price Fiat made military machinery and vehicles during World War II for the Army and Regia Aeronautica and later for the Germans. Fiat made obsolete fighter aircraft like the biplane CR.42, which was one of the most common Italian aircraft, along with SavoiaMarchettis, as well as light tanks (obsolete compared to their German and Soviet counterparts) and armoured vehicles. The best Fiat aircraft was the G.55 fighter, which arrived too late and in too limited numbers. In 1945 the year Mussolini was overthrown the Italian Committee of National Liberation removed the Agnelli family from leadership roles in Fiat because of its ties to Mussolini's government. These were not returned until 1963, when Giovanni's grandson, Gianni, took over as general manager until 1966, as chairman until 1996.

punto Internally codenamed Project 176, the Punto was announced in September 1993 and launched in late 1993 as a replacement for the ageing Fiat Uno. The Fiat Punto was voted European Car of the Year for 1995. The Punto's distinctive clean-cut styling by Giorgetto Giugiaro was an instant hit (though one of the car's most recognisable features, the vertical tail/rear lights, were not part of Giugiaro's original design and were in fact added later in-house at Fiat's factory. Competitive pricing which undercut cars like the Opel Corsa and Volkswagen Polo also helped the Punto become an instant success in the European marketplace.