Why Do Indian Manufacturers Sell Vehicles Globally but Not in Their Own Country?
Indian manufacturers have successfully sold vehicles in global markets, but for various reasons, they often do not cater to the domestic market. This article explores the reasons behind this phenomenon, focusing on market demand, customization, and strategic decisions that Indian companies make for international sales.
Market Demand and Vehicle Types
The primary reason why some Indian manufacturers choose not to sell specific vehicle types domestically is due to the lack of demand for certain models. Unlike the global market, the Indian market has specific preferences and requirements. For instance, small trucks are not popular in India due to the availability and affordability of alternative vehicles that serve similar purposes. The market in India frequently expects a fixed set of vehicle types, and manufacturers tailor their products to meet regional demands.
Customization for Global Markets
Indian manufacturers often produce vehicles and other products with an orientation towards export. This involves customization to suit the needs and preferences of foreign buyers. For example, a Mahindra pickup truck used by the Soccorso Alpino, a Mountain Rescue Force in Italy, is a perfect example. These trucks are specifically designed to handle the demands of mountain rescue operations, which are not as common in India.
Similarly, the Microtex Caddy series of batteries, manufactured by an Indian company, caters to the demand for batteries used in golf carts. While golf is popular in India, the market for these batteries is more robust in Western countries where golf carts are more prevalent. Indian manufacturers focus on producing such specialized products for export to meet global demand.
Strategic Decisions for Global Sales
The decision to produce and sell specific vehicle models globally rather than domestically is a strategic business choice. Indian manufacturers recognize that the success of some models in the global market may not translate to the same level of demand in their home country. For example, heavy trucks or vans may be equally priced as tempos, which are more commonly used in India. Therefore, it is more advantageous for manufacturers to focus on international markets where there is a higher demand for specialized vehicles.
Moreover, the focus on export helps these companies to diversify their revenue streams and reduce dependency on the domestic market. By targeting global buyers, Indian manufacturers can expand their customer base and tap into new markets, thereby enhancing their overall business resilience.
Conclusion
In conclusion, the lack of demand for certain vehicle types in India is a critical factor in the decision-making process of Indian manufacturers to sell vehicles globally. While the Indian market has its own set of preferences, the global market offers new opportunities for specialized products. Indian companies, therefore, tailor their production and marketing strategies to maximize their potential in international markets.