Underutilized Auto Industry Production Capacity Awaits New Direction


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Re: Auto industry underutilized in production capacity - Awaits new direction

Wow, I never really knew the scale of the problem until now!

I think any of the following is possible:

1. Drop in new car prices.
2. Increases in car exports.
3. More aggressive product placement and introduction of younger, more affordable models (Such as Volkswagen Up, Fiat 500, Toyota Aygo and Dacia/Renault Sandero)
 
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Re: Auto industry underutilized in production capacity - Awaits new direction

I guess Honda's number does not really reflect the reality. Their numbers should have been more than that of Hyundai. As, till may be a couple of months back, Honda had a total capacity of just 1,20,000 and only after the Tapukara plant was opened, the total installed capacity of Honda touched the 2,40,000 mark. Same might be the reason for low figure from Mahindra.

Tata figures must improve once Bolt and Zest are up for sale.

Hyundai are running almost full and any increase in demand will mean a proportional increase in wait time. Maruti's figures looks the best as it has the open capacity to manage a surge in sales anytime (maybe once Ciaz is up for sale).

Ford can touch maximum capacity if they run one more shift, not sure what is preventing them from that. Volatile Indian market? Additional effort to recruit and operate? Only Ford knows.

Renault-Nissan-Datsun is utilizing only 55% in spite of the plant manufacturing 3 brands and also acting as an export hub. Shows that only export is happening and Indian market has still not opened up for this group.

Sad to see the figures of Toyota, VW and GM. Pricing and feature list of the new Corolla Altis will mean that Toyota figure is not gonna go up by much. VW and Skoda produces great cars with questionable reliability, but still I can only see the number going up in the coming days. GM better shut shops and go home.
 
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Re: Auto industry underutilized in production capacity - Awaits new direction

GM better shut shops and go home.
Partially agreed. The current crop of GM vehicles (as offered through Chevrolet) are pretty substandard to say the least, the only possible exception being the Cruze, which is also falling short nowadays.

But GM might have a glimmer of hope if they revive their Opel brand by bringing back the Corsa, Astra and Insignia (Previously the Vectra). Get the pricing just right and it could be GM India's swansong.
 
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Re: Auto industry underutilized in production capacity - Awaits new direction

Partially agreed. The current crop of GM vehicles (as offered through Chevrolet) are pretty substandard to say the least, the only possible exception being the Cruze, which is also falling short nowadays.

But GM might have a glimmer of hope if they revive their Opel brand by bringing back the Corsa, Astra and Insignia (Previously the Vectra). Get the pricing just right and it could be GM India's swansong.
Yes Viru, I pretty much agree with you. But my comment was based on their current offering. Cruze is the only worthy product now. Beat is a hit or a miss kind of car and its been more miss than hit. Sail, Uva are all sub-standard compared to competition. Enjoy and Captiva is hardly getting any attention. So may be I can re-phrase. GM should shut Chevrolet shop in India [:D]
 
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Re: Auto industry underutilized in production capacity - Awaits new direction

Yes Viru, I pretty much agree with you. But my comment was based on their current offering. Cruze is the only worthy product now. Beat is a hit or a miss kind of car and its been more miss than hit. Sail, Uva are all sub-standard compared to competition. Enjoy and Captiva is hardly getting any attention. So may be I can re-phrase. GM should shut Chevrolet shop in India [:D]
They definitely should!

Not to mention they are still milking the Spark, which is just a Daewoo Matiz with body-colored bumpers (Half-sarcasm intended). Even the Cruze is based on the Daewoo Premier, the proposed replacement for the Daewoo Lacetti before they went bust.
 
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Re: Auto industry underutilized in production capacity - Awaits new direction

Tata figures must improve once Bolt and Zest are up for sale.

Hyundai are running almost full and any increase in demand will mean a proportional increase in wait time. Maruti's figures looks the best as it has the open capacity to manage a surge in sales anytime (maybe once Ciaz is up for sale).
I think in each segment where Hyundai is present, it is doing rather good(except for the Sonata, don't exactly know its performance in our makret!) and in lower segments is selling like hot cakes. That very much explains their higher utilisation!

Ford can touch maximum capacity if they run one more shift, not sure what is preventing them from that. Volatile Indian market? Additional effort to recruit and operate? Only Ford knows.
And that when the the Ecosport has a looooonng waiting period!! [frustration]
 
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-46% growth of GM India? Sorry to sound biased but they deserve it for trying to take Indian consumers for a ride. Pun intended.

Surprised to see Tata sales dropping though, is it possibly too early for Zest to have had a quantifiable effect on their company returns?
 
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