Business News / Ford got support from Tata, Mahindra will now help Volkswagen sail through

Business News: Ford India did business in India for a long time, but it could not get the right success. As a result, it sold its India business. Ford searched for a good buyer for its Gujarat factory for a long time, but at the last moment Tata Group helped it and bought the factory. Now the same situation is developing with the German car company Volkswagen, and Mahindra can come forward to support its sinking boat.

Yes, media reports have said that Volkswagen India is in talks with Mahindra to sell its Indian business. Despite investing about 2 billion dollars in India, it has not got the desired success in the market.

Mahindra will save the Volkswagen brand

Volkswagen company has 2 car brands in India. These include Skoda and Volkswagen. By the way, Volkswagen's parent company Das Auto has 10 big car brands in the world. These include Audi to Lamborghini, Porsche and Bentley.

The company is struggling a lot in a price sensitive market like India. That is why the company has planned to exit the Indian business or add a local partner to it. Skoda Auto CEO Klaus Zellmer has also confirmed that the company is looking for a partner to become competitive at the level of engineering, sales and procurement.

Media reports have said that Mahindra has previously had a partnership with Volkswagen regarding the supply chain. In such a situation, it is most likely that this time Mahindra will come forward to save Volkswagen. Mahindra also has a legacy of saving old brands. The company has revived Jawa and Yezdi bikes.

Why are foreign auto companies flopping?

This is not the first case of a foreign auto company flopping in India. General Motors or Chevrolet are big examples of this. Apart from this, everyone knows the situation of Ford, and now it is about Volkswagen. A big problem of all these companies is that they are not able to assess the pricing correctly in a price sensitive market like India. Expensive vehicles and lack of service network limit the demand of these companies.

More importantly, due to not being able to bring products in the market according to Indian needs, not being able to balance the product and price of their needs and not being able to understand the mindset of Indian customers, these are the reasons due to which they are not able to make inroads among the customers.

On the contrary, Tata Motors, Mahindra and Maruti Suzuki do this work very well. Hyundai and its sister company Kia are exceptions in this case which, despite being Korean, have made a good hold in the Indian market.