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  • Pascal Gula
    Pascal Gula    Premium Member   Group moderator
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    [English] "Automotive revolution ahead, Indian expert predicts" from "EETimes-UK
    Some though from an indian expert on the automotive market:

    http://eetimes.eu/uk/217700638

    Do you think that industrial country should delocalize the production tool like he said ?

    Cheers,
    Pascal
    • 29 May 2009, 11:15 am
  • Akhilesh Misra
    Akhilesh Misra    Group moderator
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    Re: [English] "Automotive revolution ahead, Indian expert predicts" from "EETimes-UK
    Dear Pascal,

    Indeed a very good post.
    In my opinion he is correct. If you look at the current scenario, where auto industry is struggling like never before. With the bankruptcy of Cryshler and GM its going to be more tougher. It will directly have impact on the suppliers as well. If suppliers get affected if will have impact on other OEMs as well because same supplier might be serving to different OEMs. So everything is interlinked. The way AUTO companies are making huge losses, the cost measures for future will be at high priority. OEMs also will have to find new ways to expand in different markets rather than sticking to a single market. This will eventually de-risk them from dependence on the single market. If you look at the surveys, ppl are demanding more comfort with lesser price tags. If you look at Toyota in US, its cheaper than GM or Ford because of low cost manufacturing. for example: If an Europian OEM is looking at emerging market like India, or China, how it can reduce the cost or car if it is manufactured totally in Europe. So one of the solution will be to do the R&D in germany and then manufacture it locally which will have lots of saving in terms of taxes, custom duties, low cost material, less shipping cost and lost cost man power too. The guy has also mentioned few example of Skoda Fabia, Hyndai and Suzuki. Renault, Nissan are also planning to set up plants in india to reduce the manufacturing cost. Renault already having tie up with Mahindra and producing its brand Logan locally.

    So I think it all boils down to cost saving.

    Your further thoughts are welcomed.

    Thanks
    Akhilesh
    • 31 May 2009, 10:03 am
  • Amit Choudhury
    Amit Choudhury
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    Re: [English] "Automotive revolution ahead, Indian expert predicts" from "EETimes-UK
    Hi Pascal,

    How are you ? Hopefully you are doing good. Congratulations on great participation you have been able to provide via this channel.

    You never really said what is your opinion on the subject ? :)

    Do you think that industrial country should delocalize the production tool like he said ?
    I believe you are mentioning the third aspect Mr. Pandit mentioned. Right ?. It is likely, though I am mindful of Nash equilibrium / Game Theory. I am NOT sure if developed countries economy should be devoid of manufacturing jobs, would that be tenable ?

    We have seen recent news item, GM would import from China, but US Govt yesterday communicated they would increase cars made in US by GM in president's address on bankruptcy. Interesting vistas and vignettes.

    Any examples for other OEMs ?

    With Best Regards
    Amit
    This post was modified on 02 Jun 2009 at 04:24 pm.
    • 02 Jun 2009, 07:55 am
  • Pascal Gula
    Pascal Gula    Premium Member   Group moderator
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    Re^2: [English] "Automotive revolution ahead, Indian expert predicts" from "EETimes-UK
    Hi Amit,

    How are you ? Hopefully you are doing good. Congratulations on great participation you have been able to provide via this channel. I am doing fine, thank you, and you? :) I am glad to see and read more and more discussion (especially in the past two weeks) on the AUTOSAR forum! I hope this will continue like this! ;)

    You never really said what is your opinion on the subject ? :) Well, it's a tough question, like you mentioned which involves global equilibrium. Delocalizing the production in so-called "low-cost" country is at best a "working" short-term solution that enables price drop. However, doing this, you are closing and cutting jobs in other country which lead the country in a worst situation. Doing this at large scale for all industry and think about the potential results! However, building production site in other country to adress the local market is a good idea.
    One day or another, countries like India or China will close the gap that exists between Europe, US or Japan, and will be left to those countries ? Well, I don't know and the future will tell us!

    So, in brief, this is my opinion which is not to be interpretated as conservative at all! :) There is no definitive answer, and this is really a global subject which go far beyond AUTOSAR and automotive!

    Cheers,
    Pascal
    • 02 Jun 2009, 6:40 pm