Here Are 6 Automotive Brands Which Couldn't Survive Indian Market Despite Their Global Prominence

When it comes to the automotive industry it's insanely competitive, and considering the Indian market, it's challenging to penetrate. We can learn about the Indian market from previous foreign brands which thought of entering India to capitalise on the vast consumer base.

MNCs like McDonald's and Amazon had to modify their business operations for the Indian consumers to run efficiently and churn out big profits effectively.

In the last five years, many global automotive companies tried to operate their businesses in India but faced a hard-hitting face-first due to various reasons. Let's analyse what made these companies quit the Indian market in the last five years.

Harley Davidson

No matter if you're a motorbike fan or not, the chances are high that you must've heard the name of this brand. Thanks to the marketing of this brand that associated high living standards and loyalty with a bike. Harley Davidson debuted in 2009 in the Indian market.

But soon, the company was struck with numerous roadblocks that obstructed their bikes from running on the Indian roads. The most difficult challenge was: making this brand accessible to Indian consumers.

Undergoing high import tariffs drastically transformed the on-road price of this bike in India. Due to this, Harley couldn't compete with the local rival bike brands. As a result, Harley Davidson became a niche brand with only Indians having high incomes as their customers.

The second challenge was not so far for this brand as the Harley owners had announced a strike in 2017 as covered by Mumbiker Nikhil, who was a prominent moto-vlogger. The problem faced by the owners was poor after-sales service as the company was not able to standardise the same customer service in India.

United Motors

Talking further, another motorbike brand that couldn't sustain the strong winds of the Indian market was United Motors. The American brand had entered India in 2014 carrying high hopes, but soon the hopes were shattered, which resulted in the brand's discontinuation in the country. UM had a very short three-year tenure that ended in 2017. Primary reasons included degrading sales, failure in union and coordination with Lohia Auto in India, with which UM had a joint venture. Later, UM faced a significant financial crisis in India, forcing the brand to look away from India.

Datson

Nissan sub-brand Datson had entered India in 2014 but what only stayed in India was the famous Datson Go advertisement as the company is one of the latest automobile brands that has announced its exit from India this April in 2022.

The company had introduced its hatchbacks "Go" & "Go Plus", whose production line is closed in the Chennai-based manufacturing plant. A drastic fall in the sales of Datson cars resulted in its closure this year.

Ford

When we talk about big, bulky cars roaring on the Indian roads that grab people's attention and make them stare endlessly at the car "Fortuner" is definitely that one car and its direct rival "Endeavor" by Ford is the one that continues the list, but the quest of both these companies won't continue as Ford exited from the Indian market back in September 2021. As per the Economic Times reports, the company was bitten by whooping $2 billion losses due to the lockdowns and pandemic, which forced the Gujarat & Tamil Nadu plants to shut down.

Fiat

The Italy-based car manufacturing company couldn't sustain itself in the Indian market due to strict Anti-Lock Brake Systems (ABS) guidelines and carbon emission norms imposed by the government, which resulted in its closure from the Indian roads in 2019. Other reasons which contributed to its closure were a fragile brand image, poor fuel efficiency, and degradation in after-sales service.

General Motors

Tracking back the trails, the one automotive company that showed the longest resilience in the Indian Market was General Motors. Entering India in 1996, GM stayed on solid grounds for nearly two decades, recording huge losses. Its journey on harsh Indian roads was over in 2017.

Global Car Manufacturers

The automobile industry is amongst the most highly lucrative sectors in India. Still, the fact we can't ignore is that it's even difficult to establish an automotive brand due to strict guidelines, clearances, licensing, etc. Several major automobile brands like Suzuki, Mahindra, Ford, General Motors, and Tata dominating the more considerable portion of the market also make newer brands establish a more muscular foot in this industry.

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