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A visit to India is good for the soul. It reminds
you about fundamental values. That was our observation when we entered
the arrival lounge of the Mumbai airport, our first stop en route
to our Rajasthan desert drive event.
Mumbai airport is like Jaipur airport and New Delhi airport. All
floors are marble or tile or stone. No carpets at all; very practical,
economical and easy to maintain.
Then the luggage-push carts. Not a shadow to the luxurious German-made,
escalator-capable vehicles that we have in the KLIA but practical
India-made equipment, simple but functional, and anyway, no escalators
in Mumbai airport for the luggage cart. That's the thing I would
also have to say about Made-in-India cars honest values, fundamental
features.
India has made slow but significant progress from
early days when it embraced modern car technology via the Maruti-Suzuki
agreement to make small cars.
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In 1991, India reduced its socialist and self-dependence
agenda and opened its door to foreign investment and technology.
Today, it makes basic but modern compact, sub-compact and
medium sized car. It still has the 1960's styled Ambassador
cars made by Hindustan Motors and these are the official cars
for the Indian Army and the civil service.
Our story begins in India because USF-Hicom's
chief executive officer Datuk William Chong is betting that
Made-in-India cars will find a market in Malaysia.
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Why India? Why not China? I asked him during our
trip to the Rajasthan desert to test the Mahindra Scorpio, the first
model that he's going to distribute in Malaysia starting April.
William, the DRB-Hokum group's automotive director, sees India
as a great source of technology and value-for-money products. He
spotted Marinara, a 50-year-old company whose tractor division won
the Deming Prize and that is the world's fifth largest maker of
tractors.
Its Multi Purpose Vehicle called the Scorpio is top Indian MPV,
far outselling its nearest competitor the Tate Safari. The first
batch of the Scorpio for Malaysia will use a Renault 2.0 litre petrol
engine.
The Deming Prize is the Nobel Prize of manufacturing companies,
awarded in recognition of best quality control. The Deming prize
has its origin in1950 when the Union of Japanese Scientists and
Engineers (JUSE) invited Dr. W. Edwards Deming to Japan where he
taught the basic principles of statistical quality control to executives,
managers and engineers of Japanese industries. His teachings made
a deep impression
And provided the impetus in implementing quality control in Japan.
In appreciation, JUSE created a prize to commemorate Dr. Deming's
contribution and friendship and to promote the continued development
of quality control in Japan. The prize was established in 1950 and
annual awards are still given each year. The prize, especially the
Deming Application Prize that is given to companies, is a world
mark of quality control so let's see if the cars will be as good
as the tractors.
For Mahindra & Mahindra Ltd, the automotive
industry is also about automotive components. It recently started
Mahindra USA (MUSA) to enter the business of making auto components
for the world's biggest car companies there.
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For some perspective of the status of industry
in India, here are some recent snapshots about the Indian
auto industry:
Bharat Forge has the world's largest single-location
forging facility and its clients include Honda, Toyota and
Volvo. Hero Honda, the Indian joint venture with an output
of 1.7 million motorcycles a year, is now the largest motorcycle
manufacturer in the world.
India is the second largest tractor manufacturer in the world
and is the fifth largest commercial vehicle manufacturer in
the world.
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Ford has just presented its Gold World Excellence
Award to India's Cooper Tyres. Aston Martin contracted prototyping
of its latest luxury sports car, AM V8 Vantage, to an Indian-based
designer and is set to produce the cheapest Aston Martin ever.
Suzuki, which makes Maruti in India, has decided to make India
its manufacturing, export and research hub outside Japan. Hyundai
India is set to become a global small car hub for the Korean giant
and will produce 25,000 Santros to start with. By 2010, it is set
to supply half a million cars to Hyundai Korea, Hindustan Motor
Industries and Ford.
The prestigious UK automaker, MG Rover, is marketing 100,000 India
cars made by Tata in Europe under its own name. India is among three
countries in the world that have built Supercomputers on their own
name. The other two countries being USA and Japan. India built its
own Supercomputers on the US denied India purchasing a Cray computer
in 1987.
100 of the Fortune 500 companies are in India compared
to 33 in China. Cummins of USA uses its R&D Centre in Pune to
develop the sophisticated computer models needed to design upgrades
and prototypes electronically and introduce five or six new engines
models a year.
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