[Livnletcarsliv]

FCA, Chevy, Ford, Harley, Indian, etc.
Why do you think these brands are unable to sustain and survive in India?

1. Chevy, FCA, Harley - Closed shops.
2. While FCA has come back in the new Avatar with Jeep.
3. Ford was never profitable in India based on the information from my friends and other sources who work in Ford.

One of the main reasons for the failure I see is a poor product strategy that indirectly impacted the number of lineups in the brand's portfolio.

I guess it's the same story with Renault and Nissan as well - however, it looks like the story of Renault & Nissan is somewhat similar in other markets as well. So I assume we don't have to dig deep into the failure of RNAIPL.

This is an open discussion to understand more about the India Automobile Scenario and its dynamics for the success and failure of reputed brands of the world. Please share your thoughts.

[museycal]

Lack of local, India first business strategies
More often than not, the American companies, being the global conglomerates that they are, search their existing products and brands bin and introduce the readily available cars in India. GM seems to be the worst offender amongst the American companies. Cars like Chevrolet Sail, U-VA, Captiva, Opel Astra, Corsa, Vectra etc. are examples of this. When American companies do got down and make an India first product, they did taste success, eg., Ford EcoSport, Ikon, Indian Fiesta, Chevrolet Beat etc.

Lack of innovation and vigour in NPI (New Product Introduction)
Except for EcoSport, the American companies have hardly been at forefront of creating new niche in the Indian car markets. Similarly, even in the segments already established, the intent to take on competition by the horns is hardly seen. In the burgeoning compact and sub compact SUV segment, except for EcoSport (which is almost 9 years old product now), Ford still doesn't have a car to take of Creta/Seltos combo!

Indian market needs and American auto makers USPs don't align
Our price sensitive, value conscious market is quite different to the USPs that American car companies usually offer. We, as a country, have rewarded frugality, value (perceived and objective, both) and service acumen. Internationally, except for Ford in Europe and the tightly controlled Chinese markets, American car companies usually don't fare well where the market needs are closer to Indian tastes. Americans find it difficult to do cheap, cheerful and value based products, case in point - Harley Davidson.

Indian operations are usually marginal, and thus, susceptible to large economic changes
Since Indian business do not contribute majorly in their global operations, the will and focus to rectify things is even lower. Simply said, Indian operations of American companies are hardly critical for their top line and bottom line. Hence, it is sometimes easy and prudent to just pack the bags and leave in the events of loss of market share, pandemics, recession etc.

[AutoNoob]

Originally Posted by Livnletcarsliv

FCA, Chevy, Ford, Harley, Indian, etc.
Why do you think these brands are unable to sustain and survive in India?

It's not just US brands that find difficult in India, even EU brands aren't doing any better.

Renault is only OEM that has gained some 'foothold' if it's 2.5% market share counts. Even to gain that, it had to do India specific product development - Kwid (CMF-A), Triber and Magnite (CMF-A+).

VW group is dealing in fractions.

In most cases, the early birds in Indian market are cashing on their early presence. Some have even wasted that advantage (Honda, Tata).

[Durango Dude]

With the Govt milking the car companies for taxes, it isn't difficult why we end up paying F-150 money for an Endeavor in the Indian context. America is the land of excess and it's no wonder they can't cater to Indian market as we dangle at the fag end of the food (car) chain and lap up cars with a rather small footprint: My brother once quipped on his return from the US when I took him for a ride in my diminutive M800 in the 90's they use the same size car's for 'golf carts'...I don't blame him and he has returned to India and drives a Renault Kwid now along with a Nissan Sunny CVT. In the US Govt and companies dangle some of the juiciest carrots in front of the consumer at real attractive rates where you're encouraged to splurge with low savings rates where as here Govt dangles a 'bambu' and add the loan sharking rates of interest offered for car loans it's a dampener for most except those with deeep pockets to afford real fancy cars...Gasoline is excessively expensive, diesel is discouraged and we're penny pinchers and it's no surprise that the American Car Companies fall flat on their collective faces when faced by the Indian consumer...Can any Aam Aadmi real afford to own and operate a real full fat American V8 and where is the infra for a good electric car and how many can afford a Tesla??

[Mile_muncher]

1. Poor Product mix/lack of new products - You can't just have 4-5 models and dream of gaining/retaining MS

2. Over squeezing cash cow- one successful model and you squeeze it beyond decades. All customers get is some irrelevant face-lift

3. After sales- Though it's improving rapidly but horror stories continue to haunt

4. Missing the pulse of market- Continue to make better/safer products while market is looking for 'more features at better price point'

[TrackDay]

The US brands have always been about big cars and trucks. Go big or go home and they have gone home now. Even in their home market, the majority of smaller cars are usually the ones from European/Asian car makers. Even most of the Cross overs / sedans sold there are the likes of Toyota/Honda/Nissan. Where they rule the charts is with Body On Frame vehicles and in India with respect to passenger cars that small segment (BOF) is ruled by Toyota/Mahindra.

The only hope for them is to bring the brands that have not yet forayed here such as Dodge and Cadillac in which the former can be focused on performance and the later on luxury. Both are less likely to bring in huge numbers, but then if they can maintain good numbers month after month that can sustain the presence of American brands in our industry.

[landcruiser123]

For the same reason why Suzuki wasn't successful in the US and pulled out a few years ago - Lack of products suiting the local customer base. "To go truly global, you need to go truly local!" India's car market for most people ends at the Corolla/Civic. US car market begins at the Corolla/Civic for most people.

Ford's case is a bit of a surprise here because some of their smaller cars are bestsellers in Europe.

[Latheesh]

Lack of commitment, no matching products, and domination by the top two players (MS and Slanted H)

Spark, Beat, Aveo, U-VA, SAIL etc. are not 'real' Chevrolet
Figo, Aspire etc. are not 'real' Ford

My American colleague burst in to laughter when I shown my Spark picture and told "I drive a Chevy back in India" (way before Beat launch in the uSA)

[Livnletcarsliv]

Another important factor (other than the poor product strategy for India) is the reliability of the products/brands associated with the cost of fixing when something goes wrong.

The probability/frequency of a Jeep breaking down/going wrong compared to a more expensive Fortuner/Endeavour is significantly higher.

For this obvious reason is why Lexus is expensive compared to the 3 musketeers of Germany, Volvo and JLR. And globally why still people prefer a Toyota Prado/LC200 over other luxury SUV's in the same segment.

[GTO]

USA car companies have always been "USA centric" only. For one, their home market is HUGE and incredibly profitable, especially on those pickup trucks & SUVs they sell. Example, the Ford F-Series truck sells 800,000 copies a year at an average price of $40000 - 50000. Do the math. Their home market itself is insanely profitable & gives them the volumes.

And it's not just India. USA car companies are quite weak globally. GM has been burning money in Europe, and just lucked out in China thanks to a smart executive or two who decided to invest there (China is the reason Buick is alive). But other than China, you will be hard-pressed to find GM strong anywhere else. Ford has a handful of small-medium successes here and there, but still isn't a truly global player like Toyota, Honda or Hyundai. Chrysler is USA only.

Lastly, the big 3 USA companies have always been in a continuous cycle of boom & bust. See their history from the 50s and every decade has seen them go strong, and then dangerously weak. All of them have skirted bankruptcy multiple times (GM & Chrysler even went bankrupt in 2008-09).

[Livnletcarsliv]

Well, below are what I think is the order of needs/wants of the Indian market.

1. Cost to own
2. Features
3. Cost to maintain
4. Space
5. Comfort
6. Safety
7. Performance
8. Build quality and Ergonomics
9. Ride and Handling
10. Capabilities

[Raghu M]

Both markets are entirely different. While the big trucks are a rage in the US, there is no one who even likes to drive them in India. How many numbers does ISUZU sell? or for that matter, the Endeavor? We simply don't have the right roads, the large parking spaces and the infrastructure for such big vehicles. And I don't mean to say our country's infrastructure is any less. It's just the way each country is. See the railway network in India, there is no other country in the world that can match the reach of Indian railways. I think the American companies have not been flexible to adapt to Indian market conditions.

[Kosfactor]

In standard American fashion, they screwed up!

None of the vehicles they know how to make would work in India, their top sellers are too big and expensive to buy and run. Their attempts to bring vehicles that would work for our needs were all half hearted sticker jobs, save for Tavera perhaps, that was Japanese and at least better to drive than an Qualis.

[ramnaresh_2000]

Lack of leadership - Look at how Mr.Zac Hollis got Skoda back in to business. The Rapid and Kushaq are enjoying good numbers. He is also so active in social media as well. Even when he had negative publicity for his remarks over an vlogger, any publicity is good publicity these days.

Lack of mass market appeal - Renault bounced back strongly with Kwid/Triber/Kiger. Nissan bounced back with Magnite. Ford shot itself in the foot with a puny 2.0L engine in Endeavor and still betting on Ecosport success. The Ecosport SE variant is a joke, the facelift is insignificant now. Jeep enjoyed marginal success with Compass, but the dealerships cannot survive with the current numbers, Renegade should be launched soon.

Step-son treatment towards Indian Market - Compare the Ecosport sold in USA and India, you will get what I say. Bring the same US spec version to Indian and pitch against Creta/Seltos/Kushaq/Kicks/Duster. It will pull good numbers. Bring back the 3.2 monster in Endeavor.

To be honest US companies are not doing any wonders in Europe or China. They just fail to understand the market trends. Not just US companies, the Japanese are following the same path. Honda and Toyota are in snooze mode. They should learn from Kia and MG, their marketing was spot on and enjoying decent success now.

[vellatechie]

I can talk about Ford, and it's primarily because lack of vision, simple as that.

After the success of Ecosport, I doubt anyone at Ford India said - People seems to love our Pseudo SUV, let's launch a proper SUV, just a segment higher.

Ford could've had its Creta Moment years before creta if they had planned properly. Instead, Ford India just decided to double down on Hatchbacks and cheaper sedans which are different segment altogether.

Hyundai is successful because they add segment firsts when they launch/refresh a product. How many 'segment first' features has Ford added to Ecosport since it's launch?