Why Many Luxury Companies are leaving India!

Tushar Chaudhary
3 min readAug 27, 2020

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From the last 10 years, many giants have exit India or in the process of leaving. Now, I’ll briefly tell you about some problems that foreign companies face in India. Recently, reports said that the American motorcycle manufacturer Harley-Davidson may quit India as a result of weak sales and a lack of visibility for future demand. Chevrolet had also left India a few years back with the same reason, low sales. Not only these but many more companies had left the Indian market. Many brands are still struggling to keep themselves in the competition and Some of them have only 2 or hardly 3 products. What is the reason behind the failure of all these companies? Let’s find out-
1) The First thing to be observed is that most of these companies are not Indian. People in India prefer affordable and efficient products that become a bit difficult for Non- Indian brands to provide and people here prefer to use their own products.
2) Many companies import their products from other countries that make the product much costly due to the taxes, customs, and other duties making it unaffordable for the Indian consumer.
3) The typical Indian mentality is the primary reason why all these companies are forced to leave India. An Indian buyer thinks of a cheap and affordable product even if doesn’t have basic features. Let’s take an example, a Maruti car costs around $6500, and Volkswagen costs around $13000 when converted to dollars. That Volkswagen would have a premium build quality, safety features, and other features that are very common in western countries and that Maruti wouldn’t even have power windows but it’s okay for the buyer because it just needs something because that can carry him or her to the destination. Most of the people in India have a miser behavior and do not prefer to live a good lifestyle.

All these points don’t mean that everyone is the same. Many Indians are Motorsport enthusiasts and they face many problems in buying an expensive product as they find it difficult to maintain it due to lack of service centers and accessories.
I hope this article gave you a brief about why Luxury companies have to struggle to maintain themselves in the market.
See you next time!

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Tushar Chaudhary

Hi There! Myself Tushar. A passionate writer and a student. I post articles every fortnight, hopefully.