While the products like clothing and daily essentials have it easy, the automobile companies struggle a lot to survive here. Sometimes the manufacturers get wrong ideas and end up implementing them with disastrous results. In fact, the example of Chevrolet and how it exited India (General Motors) is a lesson in itself.
Over the last few years, there has been a stir going on in the automobile market; a lot has been written on the dip in sales. A handful of companies held up fast while others were gasping. The story remains the same every month. Some companies like Mahindra, Tata, and Maruti Suzuki hold the winner's flag; for Volkswagen, Renault, and Nissan, it is like “another one bites the dust." However much they spend their muscle and money, the result remains the same. The main reason for their failure is a lack of market presence in some cases and overall consumer connect in some cases although they are excellent brands with great products. Pricing and positioning strategies also go wrong at times.
This car manufacturer company opened its first showroom in 1973 in Bangalore. Sipani had a fibreglass body for its vehicles. Sipani cars had looks but couldn't compete with the Maruti 800, generally called the king of the roads back then. Later, with decreasing sales, the automobile brand lost its license, leading to its final exit.
Car buyers in India are generally price sensitive. This means that companies that can sensibly price products reign supreme in the Indian market. Ford, being a U.S. based brand, failed to walk the tightrope although some of their products like the EcoSport compact SUV, Endeavour premium SUV, some models of the Ford Fiesta and Figo did well in patches in the country. However, ultimately Ford was faced with rapidly declining sales, leading to a major exit from the market.
This brand came with everything that a car lover would ask for. Earlier in its days, Chevrolet created havoc in the automobile market, but some of its cars could not leave a mark except for the Cruze which was moderately successful. Sales figures kept plunging and the brand eventually had to leave India.
Daewoo is another defunct car manufacturer that ranks amongst the “gone too soon” list. In India, it failed to last long owing to pricing and customer service issues. Availability of its cars was also a major concern. Daewoo Motors eventually exited the market in the year 2003. The Matiz was one of its most charming offerings for the country.
Fiat used to have a premier brand image from the early days. The Padmini and 118NE made the company firmly stand in the Indian market. When the Palio and Siena made their entrance, Fiat's desirability only grew higher. Poor joint ventures and inconsistent quality brought down the brand along with fewer products overall. The Linea was a wonderful product but failed to set the sales charts on fire.
These were some brands that exited India too soon. However, there are some brands people want back in the market. Some of them are Chevrolet and Fiat. This is because, despite their failures, their early products managed to win hearts of customers in India. There are some general factors that an automobile manufacturer should consider, including customer service and affordable pricing.
