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Originally Posted by 99w210 I agree that Its not an easy job to sell in USA. But, if you dont try then you'll never get there. |
I agree with you. Although if you take the case of Peugeot, the conglomerate lost hundreds of millions in their excercise to sell in the US, & after withdrawal the parent company was on an extremely shaky leg for a long, long time. Would Mahindra or Tata be able to take that hit financially &/or on their image?
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Originally Posted by 99w210 Recently I read an article at rediff.com about the success stories of Mahindra Tractors in USA ... Similarly, if mahindra can try out something with cars..albeit a difficult one -- its possible. |
True, Mahindra's tractors are selling in the States - I read the article too. These are in rural markets, where refinement is not a criteria. Comparing the sales of tractors to automobiles, which require much, much higher levels of refinement, engineering, image, etc. is like saying Indian masalas sell, & therefore, so will cars. Indian masalas are great - Indian cars aren't.
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Originally Posted by 99w210 ELF, homesick NRI's are not the real market...they are something that the companies in india can try to start with and that was just an idea..I would try not be derogatory in this forum.. |
I did not mean to be derogatory, & specifically mentioned that no offence was meant.
Demographically, there are two broad types of NRIs, especially in the States - the homesick kind, & the kind who wish to have nothing to do with India. It was the former group I was referring to. This lot are milked for all they're worth, with substandard products, their "love for all things Indian", etc.
Also note that I'm not bashing India, & am extremely proud to be an Indian. But
simply buying substandard Indian products does not make me a better Indian, & even harms the country by not forcing manufacturers to develop their products to world standards, & be complacent with their Indian sales & crappy attitude.
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Originally Posted by 99w210 Given a chance, I would definitely buy a scorpio even though it is not as good as others -- just to encourage an indian company. |
Well, you would be one of a few, & that may help the importing company in the initial stages. What about post that, when the rest of the American public discover that the products they bought were substandard? Wouldn't that affect the image of India in the long run?
Also remember that a free market has the advantage of weeding out cr@p & that without government sops, non-competitive products would die a natural death.
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Originally Posted by 99w210 Because of the excise+tax regime existing in india, our automobile companies do not have enough pressure on them to be competetive and inventive and thats the reason they can never compete in the global market. |
That's bull, & you know it. You're asking for the Indian Government to protect the Indian automobile industry by taxing imports / CBUs / SBUs. Thats the worst thing that can happen to us, as the manufacturers would stay complacent at the low end of the market & continue to churn out junk, instead of trying to compete with the stuff that's coming in.
The reason we've got lousy stuff is because for nearly 35 years, India had only 2 manufacturers selling relics from the 50s (Premier Automobiles & Hindustan Motors), & they were heavily protected by the government of India. There was absolutely no research & development for all these years from either company, & I was one of the happiest people when Premier shut down forever, because the market forced them to do so. Just think - the company showed great profits for 35 years of it's existence, then started dying in the next 15 years when the Indian economy opened up & allowed competition.
Also, please note that
I'm really pleased with the effort that both Tata & Mahindra are making - Tata, coming out with their one lakh rupee car & Mahindra finally coming up with & continuously developing their Scorpio. It's just that both companies have a real long way to go before they can come up with products that can compete in the global auto market. To push them to do so too soon may destroy the companies.
Survival of the fittest - it's a law of nature. For Mahindra & Tata to survive in India or anywhere, they need to churn out substantially better products consistently & study the markets they intend to get into.
Also,
Mpower's question to you is pertinent - would you drive around DC in an Indica? I know I wouldn't, even in Bombay.