carwars

25 cars to a 1000 is the existing penetration in India of car owners as against 825 per 1000 and 1012 per 1000 in advanced countries.So all the big guns drive into India to cream the cow and make more money under the pretext of employment and value transfer etc.The main objective underlining that is of course pass of all those dollars as repatriation back to the mother company based out of Germany or US and what ever is produced in India at cheap labor rates is exported out of the country.For example Nissan puts up a huge plant and exports 90% of its produce.So what does India gain?Others are more into the domestic number game like Suzuki and Hyundai who control 75% plus market in India.They are adding capacities and churning out cars , putting them on the over crowded roads and an infrastructure bursting at its seams , thus creating chaos.SIAM the sole body responsible for the projections forecasts 18% growth at the start of the fiscal and then now it has dropped down to 2%?????.Who will make the production and capacity adjustments???All other markets except India and China have stagnated.Where does one export?Investments are done or in the process of being done in India,e.g Gujarat is fast turning to be the Detroit of India with the likes of Maruti Suzuki and Ford, Peugeot and Tata all setting up a capacity to produce 3.5 million vehicles per annumn , which incidentally is more than what is sold in one calender year in India by all manufacturers!!!!!.
Does one keep track of the jams and basic amenities and infrastructure upgrades to accommodate this volume that is going to pour in.The way things fluctuate,be it interest rates, inflation,stock markets and fuel prices the Yo-yo in the Auto market will one day hit back at us.One needs to slow down introspect and check the parameters , lay down the basic rules and then move ahead,rather than fluctuate between a 18% and 2% growth figure that would make a lot of investments nonviable going forward.Our govt too is slow in acting at times and doesn't have a consistent policy in this direction especially when it comes to SOP's or tax rebates.