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    Thread: Is India really a market for cars?

    1. #1

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      sparkls's Avatar
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      Is India really a market for cars?

      GM has quit india, ford is going for JV, VW is not introducing new cars, Fiat has lost interest, mitsubishi is non existent, Nissan is failing and other brands are just surviving.


      Maruthi,hyundai,tata,mahindra are doing well or ok,

      Toyota is something in the middle, does well with just two models and others failing.

      Also merc,bmw,audi and other such brands too do well.



      So the overall deciding factors are

      1.Cheap to own

      2. resale

      3. cheap maintenance

      4. When it comes to merc,bmw etc these three dont matter,they sell for different reasons and different people

      So the brands which offer quality,performance and safety at a cost cant survive here. Also I think people are not rich enough to support many brands. I feel that economic growth etc is a myth in here. With rising costs earning 50k per month is nothing and even so maintaining a small car too is costly. Also many people are buying motorbikes than buying a under powered hatch.

      So if the trend continues will there be only a few brands left?

      https://www.businesstoday.in/current...ry/268541.html

    2. #2

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      Just because some companies chose to leave the market does not make India a bad market.

      Jeep launched in India, Kia Launched in India and now MG is planning to launch in India.
      I believe India is a great market for Cars. The sheer number of cars that sell each year speaks for itself.

      Some companies just don't know how to get there shit together to operate profitably. They cannot survive in any developing country.

      Quote Originally Posted by sparkls View Post
      1.Cheap to own

      2. resale

      3. cheap maintenance
      All the above are deciding factors for the majority of people in all the countries. Not just India.
      Buying power has reduced. I agree. But the reason for the other brands failing is no way related to that.
      Last edited by WildWeasel; 11th Apr 2019 at 07:42.

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      Companies enter, companies exit. A business runs on strategic and operational decisions. It doesn't indicate viability or operation-ability of market.

      India, undoubtedly is a growing automotive market and it needs to be managed / executed in a specific manner. Similarly, aviation in India is a growing market - failure of Jet Airways is their inability to run business, it is not so much attributed to the market itself.

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      It is sad to see Ford exit! But I guess we are a big enough market and we will still have options left.


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      India: India pips Germany, ranks 4th largest auto market now - The Economic Times
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      India is a odd market, Germany is about the size of Maharashtra in terms of geography. So to sell the same number of cars manufacturers need many more dealerships due to the spread out nature of the market. Our people look for value for money and less for brand name. Surviving in India needs deep pockets. Suzuki is an exception due to the first mover advantage.
      It's very difficult to build a dealer network, then a network of service stations and then regular advertising etc and all this after you have solved the land, factory, workers, distance to market issues. Not all companies have such deep pockets.

      GM is struggling everywhere, not just in India.
      https://www.foxbusiness.com/industri...by-the-numbers
      Same with Ford, they are struggling in their most important market: China.Subscribe to read | Financial Times

      As a result of the nature of our market, car companies get very few shots at getting it right. Huge investment and little sales usually results a complete disaster and empty pockets.

      And if you think that people in India want cheap cars, then you should meet one Mr Ratan Tata and he will explain it better.

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      Of course completely agree that the car market is slowing down. The total number of cars and bikes sold are going down every month since January. But that's another story.

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      GM did not have answer to India's market needs. They do well in countries where v6 and v8 cars and trucks are in demand. Everywhere else they fail. They need to have the resources and design sense for each market. They can't expect to take the market with fuel guzzlers.

      Hyundai was a late entrant to the market but they are doing well. I am sure in few year kia will take its own share of market. These guys have done their homework and know what will work for each market. Something for the others to learn from.

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      Regarding success of hyundai and interest shown by KIA,, isnt the currency exchange rates a factor.

      Arent US,european brands in a disadvantage compared to korean brands .

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      India is a very complicated market, Points to ponder-

      1. Perception of customer- Only wanting Cheapest car with Highest FE. Not much preference for Build quality, Performance or Technology.

      2. Herd following- Look at sales of M.S or Toyota products vs all other competing and often Superior products (Fortuner vs Endy etc)

      3. Instability in Legal / Authoritarian Circle- Confusing Policies, Sudden bans, Changing rules, Hit & Miss EV policy, High Taxes etc

      4. Infrastructure- Off-road feeling when driving on roads too.

      5. Dwindling and almost non-existant Modification/ Accessory market. Now even legally being threatened.

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      Quote Originally Posted by tadukuttan View Post
      It is sad to see Ford exit!
      Ford has not exit, they are simply opting for an Asset light model.....

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