WHY BIG CAR COMPANIES MAKING AN EXIT FROM INDIA ??

WHICH COMPINIES ARE MAKING AN EXIT OR ALREDY DID?

companies like Ford, Harley Davidson, SsangYong, Fiat, Chervolet etc. Decided or deciding to make an exit from India due to being in loss from the past decades . ford stated that they have been in loss from last 10 years of about 2 billions and due to the recent covid-19 hit they may not be able to recover now.

WHAT MAKES THE PATH OF EXIT FOR COMPINIES? 

1. HIGH TAXES BY GOVERNMENT

In India the taxation process and cost are very high. About 40 to 60 percent of the cost has to be paid as tax to Indian government making the cost of every abroad car 1.5 to 2 times more when compared to the cost of same car in other countries. When these cost goes so high the sales get reduce and demand collapse.

2. LIMITED RULERS OF MARKET

Mahindra, TATA, Maruti-Suzuki, Hyundai etc. are some common brands which makes sure that every new entering brand face a tough time when they enter India.

3. UNIQUE REQUIREMENT OF INDIA 

In India we as users require cheap, affordable, budget friendly and a long lasting car. A car to have everything in one is not possible for all brands and for each car. So to fulfil these requirement there exist very few car which can fulfil this. Due to these requirement we are   able to see only limited model of huge brands which are available globally. If they bring those model in India they will never be successful because they are not ticking our requirements. 

4. SUBSCRIPTION BASED CARS

Brands like OLA, Uber and many other app based company rent cars to its users who require them and charge them accordingly per day. So this reduce the chances of people buying car as their temporary need are getting fulfilled so they avoid putting money in cars.