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Old 2nd September 2024, 17:25   #1
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Indian Car Manufacturers and their missed opportunities

There’s no denying that car manufacturers have a lot of decisions to make before launching a product in India. Some decisions work perfectly and some decisions in hindsight seem like they could’ve worked. As the title suggests, I’m talking about the missed opportunities. The opportunities could’ve worked in the Indian market if executed properly and at the right time. Here’s my list -

Maruti Suzuki – Giving up on diesel was clearly a big missed opportunity for Maruti. Especially when there’s still demand for diesel in cars like the Ertiga and XL6, even on cars like the Vitara Brezza or the Grand Vitara, a diesel engine option would’ve done very well. Unfortunately, Maruti shelved the plans to make their excellent 1.5-litre diesel engine BS6 compliant due to a design flaw (related thread).
Indian Car Manufacturers and their missed opportunities-2019maruticiaz1.5d23.jpg

Another missed opportunity for Maruti has been the focus primarily on the budget segment and not developing premium cars. As of now, Maruti doesn’t really have a premium product in their portfolio and is quite slow in introducing premium features in their cars as well. Get this, none of the Maruti cars have ADAS features. Here’s GTO’s article on how Maruti is out of tune with emerging market preferences.

Tata & Mahindra – Both Indian manufacturers have completely abandoned the MPV market which IMO is a missed opportunity. This way, they’ve just handed over the market to the likes of Toyota Innova / Hycross, Maruti Ertiga / XL6 and Kia Carens / Hyundai Alcazar. MPVs are a big market today and have all the qualities of SUVs with additional practicality as well.
Indian Car Manufacturers and their missed opportunities-2018mahindramarazzo02.jpg

Honda – In a recent thread I mentioned that Honda India currently has one of the weakest lineups. Today’s Honda is a shadow of its former self. So, if I had to list out the missed opportunities, the list would be pretty long. But Honda completely getting rid of the Civic, CR-V and Accord IMO wasn’t a great idea. The cars still have a following and with the right powertrains and the right price, they would still find buyers.

Indian Car Manufacturers and their missed opportunities-honda_elevate_exterior_01.jpg

Even when you think about the Elevate, it has a single powertrain in times where the competition has 3. With the diesel engine gone, Honda could’ve gotten the hybrid powertrain to India to attract some additional customers. As of now, although the Elevate is the only one bringing in good numbers for Honda, it’s still nowhere close to the competition.

Jeep – We have witnessed a change in the dynamics of the Indian car market in recent times. The demand has caught up with the supply and when this happened, Mahindra immediately cut down the prices of the XUV700. Surprisingly, Jeep did no such thing and tried to get away with high prices for the Compass and the Meridian. Both these cars should’ve gotten price correction a long time back. Definitely would’ve helped sell some more cars.
Indian Car Manufacturers and their missed opportunities-2022jeepmeridian01.jpg

Volkswagen, Skoda and Audi – Just like Maruti, the VW group’s abandoning of diesel is a big missed opportunity. The VW 2.0 TDI was an extremely popular engine in the Indian market and they should’ve made efforts to keep it going, especially when the engine is still on sale in the European market and is Euro 6 compliant.
Indian Car Manufacturers and their missed opportunities-discontinuedengines6.jpg

Citroen – They had a very capable car with the C5 Aircross, but it was expensive at the time of launch. Citroen could’ve priced-it-to-sell-it and we would’ve seen a few more of the C5 Aircrosses on the road. With the C3, again they had a good car but without any features at launch, they failed to make a good first impression. Sure there might have been challenges with cost and profits, but first impressions last. The C3 was launched in July 2022 and almost a year after that a well-kitted Shine variant was launched (May 2023). And now, in 2024, we finally get an automatic variant as well. Imagine what would’ve been if Citroen had launched this version 2 years ago.
Indian Car Manufacturers and their missed opportunities-2022citroenc312.jpg

Kia – When the Seltos was launched in 2019, it was a proper all-round product. It was loaded with features, looked great inside out and had multiple powertrains. They even had a manual transmission with the turbo-petrol engine which the Creta didn’t at the time. This made the Kia Seltos Turbo-petrol MT the go-to option for enthusiasts. When the facelift was launched last year, they brought in the new turbo-petrol engine but swapped out the 6-speed MT with an iMT (clutch-less manual). Not sure what the market research showed, but I don’t think enthusiasts were lining up to buy a clutch-less manual performance car. Now, if you have to buy a turbo-petrol manual transmission you have to opt for the Hyundai Creta N-Line. IMO, this was a missed opportunity from Kia.
Indian Car Manufacturers and their missed opportunities-2023_kia_seltos_facelift_13.jpg

Nissan – Given the current situation of the company in India, there are tons of missed opportunities. I'm referring to the most recent one which is the launch of the X-Trail. If the idea was to launch a CBU car in India for brand presence, then there were much better cars in Nissan’s portfolio to showcase that. Launching a mid-size SUV with a 1.5-litre, 3-cylinder petrol engine and expecting people to pay ~ Rs. 60 lakh on road isn’t wise. If the idea was to launch a halo product, then there are cars like the Patrol or the Z cars as well.
Indian Car Manufacturers and their missed opportunities-2024_nissan_xtrail_exterior_01.jpg

Do share your thoughts on car manufacturers and missed opportunities in the Indian car scene.

Last edited by Omkar : 2nd September 2024 at 17:30.
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Old 2nd September 2024, 17:31   #2
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re: Indian Car Manufacturers and their missed opportunities

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Old 2nd September 2024, 19:55   #3
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Re: Indian Car Manufacturers and their missed opportunities

Might as well add to it,
Renault :- Not launching 2nd generation Duster in India when there was clearly hype for it and trying to push the 1st generation Duster to us till 2022!
There are rumours that the 3rd generation would be launched next year but knowing Renault they might just not do that for the stupidest reason they can find.
Nissan : Just like Renault they are in a death roll to by launching the non facelifted Xtrail for stupid amount of money. I am pretty sure the excellent Qashaqai is also not going to launch here.


God knows what stuff these guys are smoking

Last edited by Chisels121 : 2nd September 2024 at 19:57.
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Old 2nd September 2024, 20:47   #4
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Re: Indian Car Manufacturers and their missed opportunities

One more thing about Nissan, they often announce products coming to India but never actually launch them. This has happened multiple times in the past.

Nissan arranges events and declares a few vehicles that are expected to be launched in India, but hardly any vehicles actually get launched. If I remember correctly, even Nissan's X-Trail was initially showcased in 2016 and later again in 2023, but it was only launched in 2024. In 2023, two more cars, the Juke and Qashqai, were showcased along with the X-Trail. Currently, there is no news about the launch of the Juke or Qashqai.

Regarding Tata, the Altroz was a good product to compete against i20 and Baleno, but after the initial hype, no real efforts were made to give it a facelift or add new features. After long gap, the Racer edition was launched, but the normal Altroz still awaits a proper facelift.
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Old 2nd September 2024, 22:57   #5
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Re: Indian Car Manufacturers and their missed opportunities

Honda: If Honda had launched the Vezel instead of the Elevate much before instead of constantly testing and dropping the idea, I feel they would have been somewhere else today.
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Old 2nd September 2024, 23:01   #6
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Re: Indian Car Manufacturers and their missed opportunities

Here's my list:

Maruti: Discontinuing 1.5L Diesel engine, not focusing on overall build quality of their cars. Over-pricing enthusiast Cars like S-Cross 1.6, Baleno RS, Jimny, Fronx Turbo.

Hyundai/Kia: Just like Maruti, Hyundai has too compromised on Safety. Also, Hyundai messed up with the Santro 2018. Kia has missed an opportunity by not launching a Kia i20 with better design and features.

Tata: A.S.S, Reliability and Engines. This is the only chink in Tata's portfolio. Feel bad for the Altroz as well because it's receiving a step-motherly treatment from Tata.

Mahindra: Looks. I agree Mahindra does make good designs but I personally do not like the looks of the XUV3XO, Marazzo. Both are very good cars, but they're let down by their looks.

Toyota: JV with Maruti. For Toyota it's a win-win situation since their sales have touched 30K+ units every month, and also they're manufacturing both Grand Vitara and Hyryder. Instead of the JV, they could've launched the global products with better pricing.

Honda: Launching outdated cars. No Turbo Petrols/Diesel/EV. Also no fancy gizmos like Panoramic Sunroof etc. Honda needs to launch a 4M SUV, CRV and Pilot.

Renault/Nissan: Delaying the launch of new Duster. As per reports, new Duster is going to be launched in 2026! Ok Fine. But when will they update their current lineup. Triber is ~ 5 years old, Kiger ~3.5 years and the Kwid almost 9+ years. Neither of these cars have received a proper facelift/next-gen. Same with Nissan, no new products (ignoring the X-Trail), but yes the Magnite facelift is around the corner.

Morris Garages: By not launching Hector Diesel AT. In a segment where Diesel AT is a favorite among customers, Hector doesn't have one. Even the Petrol DCT offers a subpar performance. If Hector Diesel AT is launched, they can sell ~3-4K units of Hector every month.

Skoda/VW: No diesels, no features, reliability issues. Discontinuing Octavia and Superb.

Jeep/Citroen: They should write a book about their blunders in India.

Last edited by sharmanova : 2nd September 2024 at 23:18.
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Old 3rd September 2024, 07:27   #7
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Re: Indian Car Manufacturers and their missed opportunities

Honda : Dilution of the City Brand in India by converting the Jazz into the City. The few generations that they did so, it destroyed the brand and it's premium-ness as Honda kept focusing on development efficiency. The first gen Amaze, Mobilio etc were even bigger blunders with Honda enlarging a car whose base model itself didn't sell well in the market, the Brio.

Nissan : Unlike what Hyundai did to KIA and positioned it in India as a premium brand and somewhat like what VW did to Skoda (which was essentially a Taxi making Brand in Europe), Nissan kept floundering in India without focus. They started with Micra, launched the XTrail, the Sunny, Terrano but were confused what they wanted to be in India - Mass market brand or a premium economy maker. What they are today is a copy-paste OEM brand of Renault in India.

Suzuki : The inherent contradiction between Suzuki, which is a very small car maker globally but is a market leader in India has led to a big expectation-reality gap for the increasingly aware, literate but immature/bling loving Indian Consumer. Suzuki understood the same but were caught unaware by the tidal wave of increasing SUV consumption and Focus on Safety. The Indian arm and Japanese parent not being totally in sync did not help matters. Case in Point - the disastrous Jimny.

Toyota : After the non-performance of the Etios twins, Toyota has more or less given up on the Indian mass market, instead focussing on Premium cars only. This is a big miss as Toyota has absolutely fantastic lower cost cars globally, especially in Japan. It is an absolute loss for the Indian market.

Last edited by Carma2017 : 3rd September 2024 at 07:28.
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Old 3rd September 2024, 09:49   #8
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Re: Indian Car Manufacturers and their missed opportunities

Ford: Had products that were driver focussed. Somehow couldn't get a hand over the cost in India. Ecosport and Endy having a good pre owned premium is a classic example

Jeep & Citroen: Understimated the market heavily. Jeep could have placed the Compass on par with XUV700 and Harrier / Safari. Also they should have launched Renegade equvivalent product. Missed opportunities. C5 Aircross ideal price point should have been in the 35-40L budget, rather it touches 50L

Toyota: Small and medim sized offerings. They have given up on that space and have gone for rebadging suzuki. Japan, Middle East and the US has some really cool offerings that never see light in India

Suzuki: Giving up on diesel and reliance on small car segment. This segement is shirinking as per my understanding and they need to come with a solid strategy

Honda: Cannot be a one trick pony all the time. HR-V, CR-V are good offerings. Has potential to be in the premium crossover space, but they will not act

Nissan & MG Hector - Wrong product mix and are currently suriving because of one product that did well. Hector needs a Diesel AT, Nissan needs to get the pricing right on X-Trail

ISUZU: Build products for India. MuX is outdated and V-Cross still runs on previous gen, while international markets have the next generation. Less said about pricing

Kia: IMHO should focus on the space between Seltos and Carnival. A feature rich SUV like the Sportage or Sorento with the right pricing will be a good addition.

Mahindra & Tata: Explore the MPV space. It is largely untapped and with the right product mix there is a potential winner on hands. Don't think about competing with Toyota, think something similar to the VW bus concept with the right pricing point.

Apart from Toyota, Suzuki and Honda to some extent, none of the players in Indian market have Hybrids, which would be a big opportunity to address. Plug in Hybrid is the right approach considering the EV infrastructure issues for the Indian region.

Last edited by diwakarmuthu : 3rd September 2024 at 09:54. Reason: Added some additinal information
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Old 3rd September 2024, 10:45   #9
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Re: Indian Car Manufacturers and their missed opportunities

Honda

Honda fell from being a premium car maker in a brand with a great aspirational value to an average underperforming mass market brands that is shrinking steadily. They went from having city as the entry-level model to ending up having it as the top-end model in their lineup— it's all due to their miscalculated steps. When we thought they would do the required correction in their strategy and go back to their basics and launch their global offerings like HRV and CRV, they came up with a half hearted attempt in form of Elevate which lacks features to become competitive in the market. Too many buses have been missed by Honda and any more misses would kick them out of the market.


Sadly,
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