TAILIEUCHUNG - The Development of India’s Small Car Path

For example, Mecum Auctions is known for selling muscle cars, but they also have several all-Corvette auc- tions. The only way to learn these differences is to ex- perience auctions firsthand or talk with collectors who have. It may be more cost effective to send a pre-World War II classic car to a sale 2,000 miles from your home to an auction known for cars similar to yours. Although a local auction may seem like a good idea, if the sale specializes in cars very different than yours – like street rods and muscle cars – it will attract an audience that. | Copyright Oxford Management Publishing 2009 The Development of India s Small Car Path1 Florian . Becker-Ritterspach Jutta . Becker-Ritterspach Abstract This paper explores the emergence consolidation and challenges to India s small car path in the passenger car industry. The paper shows that this path can only be properly understood if we consider the interplay of a wider range of context conditions including political social economic and infrastructural conditions. The paper shows that while the state has played a pivotal role in creating the path it was the socio-economic conditions that channelled the political choices. The paper also shows that although the government s role in developing and sustaining the path has changed from an entrepreneurial to a framework setting role the prevailing socio-economic conditions keep channelling the political action towards a small car path. Keywords Small car path Indian automobile industry India Maruti-Suzuki TATA Nano 1 Introduction Unlike other emerging markets such as China the Indian passenger car market and industry has followed a pronounced small car path. The latest expression of this development is the introduction of the low cost car Nano by TATA. While India s small car path initially only involved the production and sale of foreign designed small cars in the domestic market India is developing towards a global production and R D hub for small cars. It is this development this paper seeks to understand. Specifically the paper explores the emergence consolidation and challenges to India s small car path in the passenger car industry. The paper shows that this path can only be properly understood if we consider the interplay of a wider range of context conditions including political social economic as well as infrastructural conditions. The paper also shows that while the State has played a pivotal role in creating the path it was the socio-economic conditions that channelled the political choices. The paper

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