India Manufacturing Talk

News and Views on Manufacturing in India

Engineering Services & Manufacturing Prospects

The long term prospects of manufacturing in India look bright in spite of the recent setbacks suffered due to the increase in oil and steel prices. Manufacturing industries have taken a hit in the recent months with thinning margins thanks to the rising cost of inputs. Interest rates tapered demand in the price sensitive domestic automobile and two wheeler industries. Relief seems to be in sight for those flexible enough to exploit the potential of overseas markets.

According to a Frost & Sullivan report in the Financial Express, global original equipment manufacturers (OEMs) are looking at India as a low cost source for their manufacturing;


Interest Rates Torpedo Two Wheeler Mfg

India’s two wheeler industry consisting of the motor cycle, scooter and “scooterette” segments has been hit by the rise in interest rates as sales have plummeted in the last few months. Sales figures of Bajaj Auto and TVS slid against market leader Hero Honda which as a result of this downturn widened it’s gap with Bajaj Auto – its nearest competitor – by little over one lakh units per month. (One Lakh = 100,000)

Bucking the trend Hero Honda sales went up 4.31% for September 2007 with sales of 314,537 units against 301,577 units sold last year. In contrast Bajaj Auto’s sales slid by 23% in September – selling 232,496 units against 300,141 last year. TVS sales fell 29% against last year – selling 115,091 units.


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India Manufacturing Talk

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