Why can-t Indian car companies manufacture luxury cars? - letsdiskuss
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Vikas Gupta

Works at Accountant | Posted on | others

Why can-t Indian car companies manufacture luxury cars?


online journalist | Posted on

Wisely said that nothing is impossible similarly Indian automobile companies can manufacture luxury cars as well but some aspect restrains them from not manufacturing luxury cars.
Let’s put some light on the reasons that do not let the companies stretch themselves in this field:
• Market: India holds a majority of middle-class people who need a car for a day to day usage, which needs not to be fancy but should be long living. The majority of people cannot afford a luxury car and hence the manufacturers focus on targeting the larger consumer rather than crashing their money in the name of luxury.
• Components: When the companies in India started they had a major issue of matching the standards of components such as engine and ZF transmission with the brands that were already well established in the foreign. At this point risking the company by making luxury cars was a higher stake.
• Technical standard: We did lack with the designs and technology to the global standards. Although outsourcing is available any suppliers are waiting for manufacturers to approach for engines and other equipment.
• Preference: We always have a perception about foreign goods being better especially they have been in the business much before us. People will willingly spend their money on buying a foreign brand but would definitely give a second thought to the home-grown companies.
Claiming these points, the automobiles companies in India have taken a very calculative decision by not investing in luxury cars and sticking to the basic model.


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