Case Study on the Rise of the Indian Automotive Industry

Topics: Automotive industry, Ford Motor Company, Renault Pages: 2 (1162 words) Published: November 2, 2014

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 well as the drawbacks of investing in this region. It is hoped, that this document will provide a plausible prediction as to how manufacturing in this region might develop over time, and the importance of location strategy as Hyundai, Nissan and other investors continue to develop their manufacturing processes in this region. Base Attraction for Producing Automobiles for Domestic Sale and Exportation There are several reasons why a company might consider basing its manufacturing facilities in India. One such reason is the large domestic market for affordable automobiles, as a result of the economic changes in the country that is prompting the growth of the middle class (Hill, 2013, P. 576). Additionally, Indian labor costs are low compared to other countries. Also, according to Hill (2013, P. 576), figures from Nissan suggest that wages in India will be one-tenth that of other nations, including Japan. Finally, due to the high value of education in India, primarily in the sciences and engineering fields, it is believed that key positions in the development of manufacturing processes and engineering will be relatively easy to staff. As the new process of automobile manufacturing grows and develops in India, there is the...

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