Influential figures of 2008

Exceptional situations warrant for extraordinary responses. Last year was no exception to the rule. Inflation raised its ugly head by August, forcing the Central Bank to constrict lending. Even before we knew it, the financial crisis had engulfed the Asian markets. OEMs and suppliers closed the year with idled capacities, inventory pile-ups and very little liquid cash on books. International automakers too have always regarded India as their long-term target, anticipating robust demand from there and spotting opportunity in their low-cost manufacturing, but in November the auto industry reported its lowest car sales in eight years with sales falling nearly a fifth (83,059 in November 2008 from 103,031 a year ago).

And, according to Society of Indian Automobile Manufacturers (SIAM), the sales figures of commercial vehicles (trucks and buses) and two-wheelers were no better. While sales of trucks and buses in India, the world’s fourth largest market for such vehicles, slumped by nearly 50 percent from a year ago, steeper than a fall of 48.6 percent in January 1998, two-wheeler sales fell nearly 14.7 percent to 567,502 units.

But then India was not alone. The US auto market witnessed 37 percent drop in car sales in November, the lowest level since 1982. In Japan, car sales were down 27 percent to the lowest in 39 years, while in China and Russia, sales were down 10.3 percent and 15 percent respectively.

In this section, Auto Monitor attempts to showcase both: stalwarts of the automotive domain, who looked beyond the slowdown with a composed sense of resilience and those who found themselves in headlines for all the wrong reasons in year that can be termed as the most eventful in a decade.

Ratan N Tata

When Tata unveiled the Nano at the Auto Expo last year, he was hoping for a late 2008 launch for the People’s Car. Trinamool Congress leader Mamata Banerjee had different ideas though. Personally, 2008 was quite a tough year for the 71-year-old Chairman of Tata Sons. Commercial vehicle sales declined rapidly, thanks to reduced economic activity and general credit crunch. JLR financing plans ran into trouble.

Internationally, Tata Motors is still looking for money to refinance the $3 billion loan it took to buy Jaguar and Land Rover since June last year. In fact, the company was forced to borrow from the public for the first time in 13 years. What’s noteworthy though is the brave buyout of the unsubscribed lot of rights issue, just the kind of boost Tata Motors was hoping to garner from its promoters.

Another extremely polarised decision was the pullout from Singur, sending a strong signal to all concerned. In October, the company was forced to move its Nano project out of West Bengal after violent protests halted work at the Singur plant. And while sales were dipped to historic lows in November, terrorists attacked the Taj Mahal Palace and Towers, brutally bringing down a monument that was for years, reckoned with the spirit of Mumbai. In an interaction with the media he said, ‘we are all committed that we will build back this hotel to what it was. However long it takes and whatever it takes, this hotel will stand.’

Anil Dua

Hero Honda Motors had a surprisingly good run over 2008, surpassing the overall market growth rate despite the slump in the last couple of months. In the April to August period, the company logged a 19.2 percent increase against the industry’s mere 12 percent. Leading from the front, VP Sales and Marketing, Anil Dua targeted sales of more than five lakh bikes and scooters for the festive season. According to dealers, average sales for the