News

    India Emerges as Production Hub for Small Cars

    Multimedia

    Audio

    India is emerging as a production hub for Asian car manufacturers rolling out new compact models for the global market. Anjana Pasricha reports from New Delhi that the market for small, low-priced cars is on the rise worldwide.

    Suzuki Motor Corporation says a new compact hatchback targeted at European customers will start to roll out of a plant near New Delhi in December of next year. The company says the car will produce lower greenhouse emissions than its European rivals.

    The Japanese company plans to export nearly two-thirds of the 150,000 cars due to be made here annually.

    Suzuki says it will invest $1.8 billion to increase capacity in its Indian factories over the next 15 months.

    Suzuki is not the only company to use India as a manufacturing base for compact cars being sold on global markets.

    South Korea's Hyundai has also made India a production hub for small cars. In October, the company launched a compact car known as the i10, which is being made only in Hyundai's Indian plants in the south of the country.

    Much of the production is being exported, to Europe, Russia and Latin America.

    Nissan says it also plans to manufacture a small car in India for export to Europe.

    Industry analysts say India offers several advantages to car manufacturers. Yogendra Pratap , formerly editor of the automotive magazine Overdrive, says the country offers expertise, low production costs and millions of potential customers.

    "India has all the engineering skills that are required to make cars," said Yogendra Pratap. "It is definitely cheaper to make cars here than elsewhere. For the sub-compact segment, India also has the volumes now. It makes sense to have a production base and a development base in a country where you are going to be having major volumes. Suzuki for instance sells more cars in India than in Japan."

    Global auto manufacturers are focusing on compact cars as demand for them rises worldwide. Stricter emission rules in Western countries and rising fuel prices are prompting many European customers to opt for small cars.

    Over the next five years, economists predict that hundreds of millions of people in emerging markets such as India, China, Russia and Brazil will be joining the middle class, and looking for cars priced under $10,000. 

    This has led global auto giants such as Toyota and General Motors to announce that they will develop low-cost cars. Most of these small cars are expected to be manufactured in Asian countries such as India and China.

     

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Chinese-Americans Heart Trump, Bucking National Trendi
    X
    May 27, 2016 5:57 AM
    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Chinese-Americans Heart Trump, Bucking National Trend

    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Reactions to Trump's Success Polarized Abroad

    What seemed impossible less than a year ago is now almost a certainty. New York real estate mogul Donald Trump has won the number of delegates needed to secure the Republican presidential nomination. The prospect has sparked as much controversy abroad as it has in the United States. Zlatica Hoke has more.
    Video

    Video Drawings by Children in Hiroshima Show Hope and Peace

    On Friday, President Barack Obama will visit Hiroshima, Japan, the first American president to do so while in office. In August 1945, the United States dropped an atomic bomb on the city to force Japan's surrender in World War II. Although their city lay in ruins, some Hiroshima schoolchildren drew pictures of hope and peace. The former students and their drawings are now part of a documentary called “Pictures from a Hiroshima Schoolyard.” VOA's Deborah Block has the story.
    Video

    Video Vietnamese Rapper Performs for Obama

    A prominent young Vietnamese artist told President Obama said she faced roadblocks as a woman rapper, and asked the president about government support for the arts. He asked her to rap, and he even offered to provide a base beat for her. Watch what happened.
    Video

    Video Roots Run Deep for Tunisia's Dwindling Jewish Community

    This week, hundreds of Jewish pilgrims are defying terrorist threats to celebrate an ancient religious festival on the Tunisian island of Djerba. The festivities cast a spotlight on North Africa's once-vibrant Jewish population that has all but died out in recent decades. Despite rising threats of militant Islam and the country's battered economy, one of the Arab world's last Jewish communities is staying put and nurturing a new generation. VOA’s Lisa Bryant reports.
    Video

    Video Meet Your New Co-Worker: The Robot

    Increasing numbers of robots are joining the workforce, as companies scale back and more processes become automated. The latest robots are flexible and collaborative, built to work alongside humans as opposed to replacing them. VOA’s Tina Trinh looks at the next generation of automated employees helping out their human colleagues.
    Video

    Video Wheelchair Technology in Tune With Times

    Technologies for the disabled, including wheelchair technology, are advancing just as quickly as everything else in the digital age. Two new advances in wheelchairs offer improved control and a more comfortable fit. VOA's George Putic reports.
    Video

    Video Baby Boxes Offer Safe Haven for Unwanted Children

    No one knows exactly how many babies are abandoned worldwide each year. The statistic is a difficult one to determine because it is illegal in most places. Therefore unwanted babies are often hidden and left to die. But as Erika Celeste reports from Woodburn, Indiana, a new program hopes to make surrendering infants safer for everyone.
    Video

    Video California Celebration Showcases Local Wines, Balloons

    Communities in the U.S. often hold festivals to show what makes them special. In California, for example, farmers near Fresno celebrate their figs and those around Gilmore showcase their garlic. Mike O'Sullivan reports that the wine-producing region of Temecula offers local vintages in an annual festival where rides on hot-air balloons add to the excitement.
    Video

    Video US Elementary School Offers Living Science Lessons

    Zero is not a good score on a test at school. But Discovery Elementary is proud of its “net zero” rating. Net zero describes a building in which the amount of energy provided by on-site renewable sources equals the amount of energy the building uses. As Faiza Elmasry tells us, the innovative features in the building turn the school into a teaching tool, where kids can't help but learn about science and sustainability. Faith Lapidus narrates.

    Special Report

    Adrift The Invisible African Diaspora