INDIAN MULTINATIONALS - A NEW LEAGUE
Indian initially had access to global automotive products till Indira Gandhi entered and abolished international products when most of the global companies had to retract and was born some local companies with their remnants like Mahindra, Ashok Leyland, Bajaj, Tempo TATA, Hindustan and Premier. Though they had products but they never upgraded them and they remained primitive as they were protected against global giants.
The second league opened when the Indian government under the agies of Sanjay - Rajiv Gandhi and Maruti was brought in with alliance of Suzuki. This new company brought more pressure on the Indian companies which were placed under the stringent Licence Raj and prevented the Local companies to develop new products until Maruti stabilized. The tie up with Suzuki catapulted the automobile industry by a huge leap but all the other companies had to bear the brunt. They were ill equipped to bear the onslaught if the Global giants stepped in. Some did launch new products later, which did reasonable well, till Global giants entered.
When the Indian automotive market opened up after the Licence Raj ended in the P. V. Narasimha Rao government, many echoed the fear of rushing of global markets with many multinational companies entering the fray leaving most of the Local companies on the ventilator and that surely did. Most of the companies could not and companies like Premier and Hindustan motors collapsed.
Those in the commercial market survived as no commercial company was ready to enter as in the passenger segment. Hence when TATA entered the passenger segment it did reasonably well all thanks to the rugged construction it is associated with. Mahindra was in the SUV segment and survived well all thanks to development of new products and supply to the government and Defence companies.
Till now the only successful Indigenous car developed in India is only by TATA motors with the Indica/Indigo as Mahindra was only in SUV and still is in (Verito is from Renault). Exception of some are the HM Contessa, Premier 118 NE and Sipani motors Dolphin and D-1.
Today Indian companies hold 20% of the Indian market and old companies are struggling to emerge once again to take on the established ones like Force, Premier and the Hindustan. All have some backing by rich groups and plan to conquer some market again. I would not call Maruti an Indian company any more as the parent Suzuki hold 51% and controlling stake.
Similarly Indian companies did hold on well in the 2 wheeler in a huge see-saw manner but well now we have 4 Indian companies (Hero, Bajaj, TVS & Mahindra) to onslaught the world market. Except for Honda, these companies could keep the other at bay and have done well in keeping the citizens happy.
Now, emerge the INDIAN MNCs.
The Indian companies have well set their portfolio, but can only keep the local market happy. Now they have entered to global markets and mopped up some companies like Ssang Yong, KTM, Avia, Daewoo, etc., but the most prized one was the JAGUAR - LAND ROVER by the TATAs. Not only acquiring but they have turned them profitable is another but remarkable feather in their caps.
Now with their plans for globalization, they don't have remarkable products for their impact and they have known it late all thank to Indian recession. They have two tasks in their hand. First is the mopping up of new companies globally to add up their profile and also catapult their modern products globally. And they have a huge task in their hand because the time is ripe or they will have to perish. Because with China entering Indian MNCs will have to rush up as they had only rubbish products ..to be precise we called as them as Chinese tin cans.. and they are getting better.
Ratan Tata said TATA MOTORS will need to settle and will be matured company by 2020. By then lets hope Indian MNCs will hold some large chunk of Global Automotive market by then. Economictimes Article :Best-of-both-worlds : Birth to Indian MNCs
Note: This is a self composed article and is not copied from anywhere else.