Growth of the Automobile Industry in India - 988 Words

The automobile industry is the fastest growing sector in India. Growth in consumption patterns has encouraged tremendous improvement in manufacturing sector and the auto industry has been growing at a rapid pace recording over 2.06 million four-wheelers (passenger cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps), and over 9 million two-and-three wheelers (scooters, motorcycles, mopeds, and three wheelers) - in 2006-07. (SBH India, 2008) It was this promising outlook for Indian auto industry that forced Fiat into a collaboration with Tata Corporation India in 2007. However within few months, troubles were reported and by 2010, it was officially considered an unfortunate venture since Fiat was losing in terms of sales and profits so rapidly that it made Fiat and Tata rethink their Joint venture. In 2011, the two companies decide to reorganize their distribution channels to allow separate distribution facilities. Fiat Motors had initially planned to sell through Tata dealers but the channel tie-up did not prove profitable as evidenced by sagging sales and in 2011 it was decided that separate dealerships might work better. The joint-venture agreement with Tata Motors stands. We are altering our marketing strategy. We have identified 20 cities where Fiat cars will now be sold separately and independently, said Ranjeev Kapoor, CEO of Tata India. (BS reporters 2011) Interestingly while Fiat sales were falling by 15 percent in India,Show MoreRelatedAnalysis Of Stock Price Movement Of Automobile Industry Essay1726 Words   |  7 PagesSTOCK PRICE MOVEMENT OF AUTOMOBILE INDUSTRY IN INDIA WITH REFERENCE TO BSE Dissertation submitted in partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION of BANGALORE UNIVERSITY By Rino Mathew T.E Reg.No.14YUCMD126 Under the Guidance of Prof. Sudharsan Reddy Associate professor ACHARYA BANGALORE B-SCHOOL Bangalore University 2014-2015 CHAPTER 1 INTRODUCTION PROFILE OF INDIAN AUTOMOBILE INDUSTRY IntroductionRead MorePresentation on Tata Nano Car1647 Words   |  7 PagesPresentation Transcript 1. Presentation On Tata Nano 2. Introduction Of Tata Nano o â€Å" Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the actionquot;. 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