Future of Engineering
Tuesday, March 4, 2008
Low-cost production: Industry attention riveted on India
Tata Group's (India) “one-lakh” or $2,500 car, launched in Jan 2008, showcased the ability of Tata – and, more broadly, India’s emerging carmakers – to develop, engineer, launch, and sell a car at rock-bottom cost, allowing for entry-level costs affordable to the developing world’s legions of new carbuyers.
Established carmakers continue to find ways of saving costs in every part of the production process. At its Takaoka site in Japan, Toyota – the industry’s most admired manufacturer – is building a plant whose lines will be half the length of their predecessors, but be able to produce eight rather than three models, says Andrew Lee, research analyst with automotive consultancy Frost & Sullivan.
Bosch, the German automotive and industrial group, estimates low-cost vehicles priced at less than €7,000 ($10,600) could reach a 13 per cent share of the world market – or about 10m vehicles – in 2010. Toyota, Renault/Nissan, and other big carmakers are developing cars for the segment. India has riveted the global industry’s attention on the low-cost market recently for three reasons.
Full story here
Established carmakers continue to find ways of saving costs in every part of the production process. At its Takaoka site in Japan, Toyota – the industry’s most admired manufacturer – is building a plant whose lines will be half the length of their predecessors, but be able to produce eight rather than three models, says Andrew Lee, research analyst with automotive consultancy Frost & Sullivan.
Bosch, the German automotive and industrial group, estimates low-cost vehicles priced at less than €7,000 ($10,600) could reach a 13 per cent share of the world market – or about 10m vehicles – in 2010. Toyota, Renault/Nissan, and other big carmakers are developing cars for the segment. India has riveted the global industry’s attention on the low-cost market recently for three reasons.
Full story here
Labels: Manufacturing-Production-Engineering
PermaLink - Low-cost production: Industry attention riveted on India posted by Ecacofonix : 8:40 AM
