With an eye to the large and growing market for their products, Indian auto component and tyre companies are making a beeline to set shop in Europe (especially Eastern Europe). Just last month Apollo Tyres announced that it was setting up a euro 200 million green field venture outside Hungary. And Delhi based Amtek Auto will set up a production base which will come in to operation in 2009 in Romania.
HD TV is all set to make a grand entry in India by the year-end. Direct-To-Home operators -- Dish TV and Reliance Communications -- are planning to offer HD TV set top boxes, though at a premium.
The brain drain, it seems, is passe. India is becoming one of the hottest destinations for expatriates (both those of Indian origin and foreigners) for top jobs. That is because big business houses in India are ready to offer pay packets that are equivalent to and sometimes more than global benchmarks. This is a key finding of a study of senior recruitment trends by US-based SpencerStuart, a leading executive search firm that specialises in recruiting CEOs, presidents and COO
Led by Huawei Technologies and ZTE, Chinese manufacturers are challenging the domination of European equipment-makers by grabbing contracts (some of which are in advanced stages of negotiations) worth over $2 billion in 2008 -- nearly one thirds of the Indian market of around $6 billion.
Now, a growing number of well-heeled private citizens are buying armoured vehicles for their safety, providing a profitable new business stream for companies like Jalandhar-based Laggar Industries and automaker Hindustan Motors. The annual market is about 500 vehicles, of which 30 to 40 are bought by private citizens.
Speaking on the cancellation of the deal, Joe Bowman, chief executive officer of Ultra Motors, said, "The opportunity cost of selling electric vehicles in India does not fit strategically under this joint agreement. We intend to create shareholder value and positively impact those markets where we operate. We have come to believe India is one of the largest markets in the world. So we are looking forward to develop it independently."
German luxury carmaker BMW is evaluating over 100 component manufacturers in India to outsource engines and chassis for its global manufacturing operations, according to a board member. "We are impressed with the quality of die casts and forgings in India that we use for our global operations. The quality of products from second- and third-tier is impressive," said Ind Herbert Diess, who is on the BMW AG board.
"The compact petrol 1.2 litre car will be configured to international markets and will not compete with the small cars available in India. Depending on market conditions, we will import the hybrid version from Japan later," M Takedagawa, president and CEO, said on Monday.
Last week, US aircraft manufacturer Boeing signed an agreement with Tata Automobile Limited Manufacturing Solutions, a wholly-owned Tata Motors subsidiary, for manufacturing structural components for Boeing's 787 Dreamliner airplane programme.
