Top Global Auto Players Fail in India: Future Growth Plans?

Thread Starter #1
Apr 11, 2011
Toyota, GM and VW, their numerical achievements in India remain a stark contrast to their achievements at a global level.
How they failed to connect with the Indian Market or is the Indian customer a market so different from the rest of the world.
But in India, they are ranked six, eight and 10, respectively, and struggling with the bottom line .
The irony is Suzuki a relatively smaller player seem to hold the top slot in the last decade + and continue to grow. Though the GM, VW and Toyota has focus on China, India a fast growing auto segment cannot be ignored and that is where they are scambling for strategies. The China's market needs is contrasting to that of India which makes it more difficult for them to have a single global product. This is what atleast VW has come to terms so far in understanding the market here.

The Resurrection plans

Toyota- Toyota drove into India 17 years ago and is nowpositioning itself differently. It plans to stay away from the sub-Rs 4 lakh car category, thus skipping 70% of the market, a defeat is has easily relented. Toyota tried to breakthough with the India specific designs of the Etios Twins but received a lukewarm response from the market due to its glaring cost cutting measures.
A response which indicates that indicates reliability is not the sole factor for success.
Toyota wants to gain in India through quality, technology and its global design language, one of the few markets where they do local production of hybrids.

GM - General motors arrived in India 20 years ago , a company deeply in crisis globally on recalls, this is a phase of rebuilding in India -- its balance sheet, the Chevrolet brand and consumer trust.
New launches might not be the answer here, an aggressive marketing is the need of the day for GM.

VW - A relatively newbie ( 7 years) in the Indian market, eyeing to collaborate with Suzuki, but fizzled out ,are now drawing up a new strategy. Volkswagen had a strong phase of growth from 2010 to 2012, with Polo and Vento. But growth has since flagged in the absence of an India-specific small car and the absence of an effective supplier base. They are in the consolidation phase of addressing the aftermarket woes and into facelifts. The proposed sub 4m sedan, SUV and CUV's could be interesting. A specific car for the Indian market (sub 5 Lakh car -yet to be approved) are their plans for cracking the Indian market aiming for a market share of 7-9% for the entire group by the end of 2018-2020.

But will the world's top three carmakers find a new gear in India?

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