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Ford got Tata’s backing, now Mahindra will sail with Volkswagen

Sagar Patel

By Sagar Patel

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Volkswagen and Mahindra

Ford India has been doing business in India for a long time, but it has not been able to achieve the proper success. The result was that it has sold its business in India. Ford has been looking for a good buyer for its Gujarat factory for a long time, but at the last moment, with its help, Tata Group has bought another factory. Now the same is happening with the German car company Volkswagen, and Mahindra can come forward to support its sinking ship.

Yes, media reports say that Volkswagen India is in talks with Mahindra to sell its Indian business. Despite having invested around $2 billion in India, it has not achieved the desired success in the market.

Mahindra to save Volkswagen brand

Volkswagen company has 2 car brands in India. This includes Skoda and Volkswagen. However, Volkswagen’s parent company Das Auto owns 10 major car brands in the world. These include everything from Audi to Lamborghini, Porsche and Bentley.

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The company is facing many difficulties in a price-sensitive market like India. That is why the company has planned to exit the Indian business or add a local partner to it. Skoda Auto CEO Klaus Gelmer also confirmed that the company is looking for a partner to be competitive on the level of engineering, sales and procurement.

It has been said in media reports that Mahindra has already partnered with Volkswagen as far as the supply chain is concerned. In such a situation, it is most likely that this time only Mahindra will come forward to save Volkswagen. Mahindra also has a legacy of saving old brands. The company has revived Jawa and Yezdi bikes.

Why are foreign auto companies failing?

This is not the first case of a foreign car company failing in India. General Motors or Chevrolet are a great example of this. Apart from this, everyone knows the situation with Ford, and now it is Volkswagen. A big problem for all these companies is that in a price-sensitive market like India, they cannot make correct price assessments. Expensive vehicles and lack of service network limit the demand for these companies.

More than this, not being able to bring the product to the market as per the needs of India, not being able to strike a balance between the product and price as per their needs and not being able to understand the mindset of Indian customers, all these are the reasons why it failed to win over the customers.

Tata Motors, Mahindra and Maruti Suzuki, on the other hand, are doing a very good job of this. Hyundai and its sister company Kia are an exception in this area, which, despite being Korean, have established themselves well in the Indian market.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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