WallStAnalyst.com: Rural Push and Fuel Efficiency Emerge as Growth Engines for Automobile Industry

WallStAnalyst.com: Rural Push and Fuel Efficiency Emerge as Growth Engines for
                             Automobile Industry

  PR Newswire

  BANGALORE, February 13, 2014

BANGALORE, February 13, 2014 /PRNewswire/ --

Hurrah to the Farmer

India is the  sixth largest  automotive manufacturer  in the  world, with  the 
industry contributing about 6% to the GDP, 22% to manufacturing GDP as well as
generating direct employment for over a million people and indirect employment
for 15 million. Although the global slowdown has affected the fortunes of  the 
automobile industry in India,  growing demand from  rural India is  propelling 
the growth of the industry. Unaffected by most factors that have dented  urban 
populations, rural Indian's spending is governed by the monsoons and a  bumper 
crop. Thanks to a generous monsoon and increasing rural demand, the  dwindling 
sales of  automakers  have received  a  new  lease of  life,  thereby  fueling 
industry growth. Please access this report by following the link below:


 (Logo: http://photos.prnewswire.com/prnh/20131216/10084998 )

Fall of the Titan

Karl Slym, Managing Director of  Tata Motors Ltd, who  took over the reins  of 
the company in September 2012 with  the aim of turning around India's  largest 
vehicle maker, died in Bangkok on 26 January 2014. Slym's shocking death comes
at a time when Tata Motors was witnessing a revival of sorts after his  strong 
focus on two major product segments - commercial vehicles and passenger  cars, 
called "One Team One  Vision", launched in December  2012. In August 2013,  he 
added ACES (accountability, customer and product focus, excellence and  speed) 
to this vision.  One of his  core job objectives  was to revive  the Nano  and 
repositioning it as  a smart city  car. In this  regard, Tata Motors  recently 
launched a premium edition of the Nano with new features to prop up  declining 
sales. With his untimely death, there is a  huge gap to be filled in terms  of 
leadership and vision that the company needs to tide over the storm.


Overview of US Automobile Industry and the Detroit 3

The automobile industry  in any  country is a  vital component  of its  growth 
engine since it is extensively interconnected with the industrial and cultural
framework. According to the  2010 Center for  Automotive Research report,  the 
automobile industry accounted for a share  of 3-3.5% of the country's  overall 
gross domestic product in the US. Since the automobile industry mainly depends
on the manufacturing  sector for its  raw materials,  it is one  of the  major 
drivers for the growth of the manufacturing sector over the past few  decades. 
Rapidly evolving from  horse-powered buggies to  advanced hybrid  automobiles, 
the industry has indeed come a long way. See our coverage of the US Automobile
industry and the emergence  of the Detroit  3 by visiting  the Report page  on 
WallSt.Analyst.com on Friday, 14 ^ February at 


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