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Entry Strategies in Emerging Economies: The Case of the Indian Automobile Industry

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dc.creator Mukherjee, Avinandan
dc.creator Sastry, Trilochan
dc.date 2002-09-04T17:23:13Z
dc.date 2002-09-04T17:23:13Z
dc.date 2002-09-04T17:23:13Z
dc.date.accessioned 2013-05-31T19:03:41Z
dc.date.available 2013-05-31T19:03:41Z
dc.date.issued 2013-06-01
dc.identifier http://hdl.handle.net/1721.1/1631
dc.identifier.uri http://koha.mediu.edu.my:8181/jspui/handle/1721
dc.description In anticipation of rapid growth, the passenger car market in India is crowded with 18 companies trying to establish themselves. Most companies have joint ventures with Indian partners and have entered the market in the last two years. The number of new entrants over a narrow time window of two years is unprecedented. Demand forecasts vary and analysts expect anywhere between 2 and 3.5 million cars to be sold in the next five years. Equity holding for the international partner is usually over 50% and they retain significant managerial control. Most of them have introduced cars in the $13,500 to $33,000 price range, which is viewed as a luxury segment in India. Automobile companies have also chosen to establish exclusive dealerships. Initially, companies have chosen to import completely knocked down (CKD) kits and assemble them in India. However, this strategy is not effective in the long run since such imports attract 50% duty. The major implications are that a shake out is likely and that companies would need to have alternate plans, including introduction of cars in other market segments, lower prices, and exports from India if they cannot establish themselves in the domestic market. The supplier industry is very small and needs to develop simultaneously on all fronts including rapid capacity expansion, acquisition of technology, improvement in manufacturing practices, quality and productivity, adoption of lean manufacturing, and developing product design capabilities to meet the needs of assemblers. Therefore, a critical requirement for rapid growth of the industry is adequate assembler involvement in the suppler industry.
dc.format 33369 bytes
dc.format application/pdf
dc.language en_US
dc.subject passenger car
dc.subject Indian automobile industry
dc.subject international market
dc.title Entry Strategies in Emerging Economies: The Case of the Indian Automobile Industry

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