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    Thread: Is India really a market for cars?

    1. #11
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      Quote Originally Posted by WildWeasel View Post
      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.
      Yeah plus GM, Ford,FCA, VW etc are facing issues everywhere not just India
      Ford is going asset light for India though, I suspect they wont ditch India, of all these brands, they manage a sizeable figure in Endy and Ecosport

    2. #12
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      Quote Originally Posted by kkn13 View Post
      VW etc are facing issues everywhere not just India
      As a VW group fanboy, I must state that VW is the largest manufacturer by volume. It moved more units than Toyota too.

      http://fortune.com/2018/01/17/vw-ren...gest-carmaker/

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      Affordability, reliability, maintenance cost and even resale is important in any country. In India mileage is also a huge factor. Of course there are personal preferences like looks, car brand etc ... Ford make good cars and are underrated. But at least they are trying unlike others manufacture. I think they will stick around. Toyota and MS are also doing some partnership with Brezza. MS will also release Corolla in future to compete against that segment I read this somewhere or in some yt video can't remember.

      I have noticed that Hyundai is loosing market share. Last month they were 15%. I think it used to be 25% before. Mahindra is making progress and Tata as well is gaining with tiago sales. Kia is definitely coming. Having more options is always good. For sure performance oriented cars is definitely not the Indian market. Tiago JTP which is pretty affordable is not selling too much I guess. Baleno RS, Polo GT, Figo sports S and obviously Abarth Punto make very low numbers.
      Last edited by KimiRaikkonen; 14th Apr 2019 at 22:45.

    4. #14
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      Quote Originally Posted by sparkls View Post
      Is India really a market for cars?
      Is this a question or pun ? especially when one is a owner of a car since few years already, member of the automobile forum on internet.

      Automotive industry in India - Wikipedia page mentions that the first car was bought in india in 1897, so undoubtedly India has been a market for automobiles since then.

      now the question is whether it is small market or big market ?,

      i think tadukuttan shared chart that India is 4th largest in the world in terms of volumes. that is out of close to 200 countries so definitely a big market for sure.

      now the question can be rephrased, Is it a valuable market ?

      I think Indian Automobile market is approx 100B$ in size. that is approx 67000 Crores and contributes 7%+ to our GDP over all. It is one of the largest job creators for Indian Society. It brings taxes to our government. It has been growing, now at approx 3.8 Million (38 Lac units) per year, it is a must participate market for automobile companies. future potential is very high as India is one of the Top growing large economies in the world, owning a car is still aspirational for all Indians, hence it is immensely valuable to all stake holders.

      now the question is , is it attractive enough to participate as a automobile company ?

      Attractiveness depends on many factors, mainly classified as

      internal factors : abilities, financial strength, product portfolio, product-market fit, ability to compete, ability to manufacture, ability to sell and service, ability to attract competent distributors, dealers, service franchise, engineers, managers, technicians, mechanics etc, ability to be seen a an aspirational company and product to own and drive, scale at which the company operates, how effectively and efficiently it makes and executes its plans, etc.

      External Factors: Availability of capital, interest rates, exchange rates, Entry barriers, regulations, affordability among buyers, What other competitors are doing, subsegments and competitive intensity within those segments, how is the public transport and alternatives available to people, how is the general economic situation, disposable income and future outlook in the society, etc

      external factors are common for all players, hence no discriminatory in nature. internal factors being internal to the company, can not be altered by common buyers or third parties. Internal factors can only be controlled and arranged for success by the management of the company. Some companies/brands can manage it and achieve success, some companies can not. some companies had earlier managed it, but failed to do so on continuous basis. the companies which had declined have bounced back, companies which had seen soaring success in the past have crawled in recent times. so these trends are cyclical in nature.

      Now the question can be rephrased: Is it an attractive market for incumbent players ?

      Yes very much, Luxury Car OEMs are investing in the country, Mainstream car OEMs are investing in the country, Entry level car OEMS are also investing and building products products for this market. Of course some players have withdrawn basically because of their internal issues as well as their inability to execute their plans in this market. But new OEMs and Brands are entering the market as well. someone's loss is someone's gain. It is all about survival of the fittest. It is the true sign on free market economy.

      Here is an interview of the CEO of PSA Group which is looking to enter India market. he clearly outlines what they are doing to win in this market.

      PSA beats most competitors in Europe, we can do it in India, too: Carlos Tavares - The Economic .pdf

      The last, it is a fact that losers will sulk, withdraw and cry that it was tough to fight it out, they did not get resources, there was no level playing field etc. if someone love the losers, then they should give losers necessary money and resources and prep them up for next round of fights. we as consumers can not prep up losers in automobile market.

      Last edited by Nomad; 15th Apr 2019 at 11:17.

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      Quote Originally Posted by laxminarayanans View Post
      As a VW group fanboy, I must state that VW is the largest manufacturer by volume. It moved more units than Toyota too.

      | Fortune
      Still , they have also taken the biggest hit

    6. #16

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      Till the following changes it will be hard time for any car entity:

      1. Kitna Deta hai
      2. High Taxes
      3. High Fuel Prices
      4. Worst infra (off roading when on road)
      5. High Tolls
      Bitten by Linea Bug.... Now enjoying the MJD. Navigating with Sygic in Z1.

    7. #17
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      Quote Originally Posted by livelyyoungman View Post
      Till the following changes it will be hard time for any car entity:

      1. Kitna Deta hai
      2. High Taxes
      3. High Fuel Prices
      4. Worst infra (off roading when on road)
      5. High Tolls

      1. Doesnt exist anymore, no one looks at mileage anymore, only cabbies.... Plus cars are becoming more and more fuel efficient.....

      2. High Taxes is hardly an arguement , everyone pays taxes for everything. Doesnt stop people from buying things like even homes etc. Those wanting to buy will buy. We need tax money for infrastructure.

      3. High fuel prices is due to worldwide barrel rate, again this affects public transport, airlines, logistics etc as well. Hardly means it exclusively affects car buying. Just because a few thousands a year increased doesnt mean people will stop driving their car worth lakhs.

      4. Not all states, cities etc, most places now have acceptable levels of infra. Again if you want cheap cars, cheap fuel, no taxes all of which will lead to an increase in vehicles on the road , meaning more stress and load on existing infra. Doesnt work that way right?

      5. Refer 2.

    8. #18
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      The kitna deti hai part is mostly irrelevant in Urban areas. Most cars are driven in 2nd gear and spend a lot of time stuck in traffic.
      It's very relevant for taxi drivers and long distance drivers. But for the private car driver who will drive 15-20 kms a day and spend a lot of the time in traffic, signals etc it's really not relevant anymore.
      On a long drive the private car owner won't really worry about getting 4 kms less if the car is cool and comfortable. Unless he is doing it everyday or every week. In which case he will not be the average guy anymore.

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