In 2017, there were almost 16 brands of passenger vehicle on sale in Indian mass market, including Chevrolet which got discontinued in mid-2017. Still Indian market is highly skewed with top two players commanding 67% market share. Several global giant are still fringe players in India and struggling. Unlike global market where market leader has share of roughly 10%-30%, 50% of market share of Maruti Suzuki in India is staggering.
There could be several reasons why global giants are sitting on fence and watching Indian car market action, like – lack of attention of parent group, fail to read the consumer need, too slow to react and adapt, flawed product strategy or execution etc. Biggest mistake MNCs make, is to consider India as price conscious market (Nissan decided to launch cheap Datsun Products), whereas, Indian buyers are more value conscious, which can be easily explained with Toyota’s product portfolio. Build to cost Etios and its derivative Liva performed poorly in comparison to premium priced Innova and Fortuner.
Performance of luxury car makers has been in line with the global order.
(The article is written by Rohan Rishi. You can connect with him at firstname.lastname@example.org)