Category — Automobile

Google has let loose an unspecified number of cars and tricycles to photograph  streets in Bangalore, one of India’s largest cities, according to a report in the Deccan Herald newspaper

They expect the project to face several India-specific challenges: narrow, chaotic roads, traffic, weather, network problems. Bangalore offers a good sample of all of these challenges.  If ‘Street View’ cars can pass the Bangalore test, they will be able to drive elsewhere with ease.  Mumbai and Delhi, which appear to be next on the rollout list, which are the two largest cities in India Vinay Goel, product head of Google India, declined to disclose how many Google cars are driving around in Bangalore.

Street View car and tricycle at Google Bangalore

What this means:

While GPS and accurate maps are becoming more common in India, getting to your destination often involves “asking someone” on the street as you navigate. Street View will obviate the need for such interactions, at least a little.

In 2010 American exports to Asia exceeded shipments to the Europe for the first time ever. Yesterday, I met U.S. Commerce Secretary Gary Locke who was in Los Angeles to promote President Obama’s  National Export Initiative (NEI), which seeks to double American exports to $2 trillion by 2014.

Speaking at the Asia Pacific Business Outlook conference, Locke said exports now supported 10 million jobs in America, including 700,000 in California. One in three manufacturing jobs and one in five agricultural jobs in the United States were tied directly to exports. In addition, exports were a key driver of economic recovery in the past two years, accounting for nearly half U.S. economic growth since 2009, according to Locke.

Commerce Secretary Gary Locke and me

In my work at Amritt, my colleagues and I are vigorous supporters of the NEI. In fact the topic of my talk at the same conference was how to increase exports to India five-fold not just two-fold; we believe that this is quite doable.

Secretary Locke, the first Chinese American to hold a cabinet post, is expected to become the next U.S. Ambassador to China  by June of this year.

Takeaway: Asia and India in particular is hugely important to America’s economic engine going forward.

Ford Motor Company’s India operation  said that its sales in India tripled in February compared with the same month a year ago. For the month, Ford sold 9,293 cars in India compared with 3,223 last February.

Ford India's Newly Released "Figo" Model

Both Ford and General Motors are doing very well in India lately.

Takeaway: If you take the time to understand the pulse of the India consumer, you will be rewarded handsomely even in the light of local, Korean, and Japanese competition.

In  deal with India’s Shreyans group,the Italian sportscar maker Ferrari plans to open its first dealership in New Delhi in the upcoming spring, and a second one is scheduled to open in Mumbai in the second half of 2011.

The company, a unit of Fiat, will sell its California, 458 Italia, 599 GTB Fiorani and FF luxury car models. Prices will start at $460,000.

Takeaway: The newly rich in India want boasting rights and now virtually every luxury car maker has some presence in India. I expect until sales to be very low, since many rough Indian roads don’t make it very practical to get your Ferrari onto the highway from your home. But I am sure that the Delhi and Mumbai police will have some surprises on the expressways after midnight .

The Four largest motorcycle markets in the world are India, China, Indonesia and Vietnam. In fact in 2002, India ranked top in the world, with an estimated 37 million motorcycles and mopeds.

Indian bikes are built to negotiate tough road conditions, erratic drivers and often unforeseen obstacles, such as the errant stray cow, for whom traffic holds no sway. The Indian biker traditionally has been a commuter, not a sportsman. But as traffic conditions change and rural areas get developed, newer highways and roads are built, and a new breed  has emerged as a sporting enthusiast, seeking faster, stronger machines with brand names to boot.

India already imports motorcycles such as the Suzuki Hayabusa, the Kawasaki Ninja and the Yamaha YZF R1, each of which come with a large price tag and sometimes  a wait time. But now, there may be a solution to that. Harley – Davidson recently announced that they will establish  manufacturing facilities in India. This includes a mother plant which will be the first of its kind for Harley-Davidson, outside of its manufacturing facilities in the US.

As the bikes get churned out, Harley plans to sell them to developing countries, at a more affordable price. So everyone benefits – Harley-Davidson with its cheaper labor, Indians who will have Harleys rolled out to their doorstep, and emerging bike markets, who can afford to buy a cheaper produced bike.

This might also be the answer to Harley’s flagging American sales (Harley dealerships have struggled to stay afloat in the economic downturn, and it’s reported that 36 American dealers closed shop in 2010)

However at a starting price of about $13,000  for the Superlow 883 and about  $14,000 for the Iron 883, I don’t foresee this becoming a bike the average Indian can afford. Harley will still retain its exclusivity and appeal to the rich few.  I will be intrigued to see if the rural rich embrace the Harley for its sturdiness or if remains the domain of the upwardly mobile urbanite, looking to show off their latest toy.

Takeway: There is a market for any product at any price in India. Local manufacturing by Harley will reduce the import duty load. It is not surprising that India is the first company that they chose to build a manufacturing plant. Many peers in other industries have done things in India, that they did not do anywhere else.

Image  from Harleydavidson.com