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India and developing markets, a hope for recession hit Auto Markets

Developingcountries markets are becoming the best choice for the auto manufactures worldwide. Europe and the other developed countries' market have been hit by the recession which has proven to be most catastrophic. The developed market conditions are such that they are looking for support from the other market. The BRIC nations which include Brazil, Russia, India and China are being looked at as the hot auto markets for the developed nations. The European, Korean, American and Japanese auto mobile manufactures are hunting for the local market players. They are also planning to sell their own products in the developing world market. The recent story of, Mahindra Cars and Mahindra, which has taken the Ssangyong, the South Korean, SUV auto marker. The deal is in its final stage and is expected to enter final documentation by next year in February or March. Mahindra and Mahindra also plans to come out with new and contesting SUVs. Russia and China are witnessing lots of ventures and partnerships in their own markets, but back home in India the auto mobile manufactures sell their own brands which are established in the country. Tata Motors have already proven the worth of the developing markets by taking over one of the most prestigious brands Jaguar and Land Rover in the year 2008. With the acquisition, they have turned the British brands into profitable ventures. Under Tata Motors leadership JLR, has extensive plans of expanding its manufacturing and adding lots of features. This is being done as an extension of the growing market for more fuel efficient and environment cordial cars. In this race of acquiring the developed world markets, the non- car automotive are also looking for mergers. The Sonalika Group of Industries one of the top manufacturing units of India, is talking with firms in America and China, for joint ventures and setting up production units to introduce their tractors in these countries. They are also hunting for mergers and joint ventures for putting assembly units in Europe. Rajiv Wahi, the ITL President (International Business) without mentioning the deal size, has said that they have shortlisted the firms for taking over in the Europe markets for assembling the products. He also said that Chinese market has a lot of potential to explore. The company has plans to introduce products in the Chinese market with tie ups with the local players.

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