GM, Ford comeback in India stalls as market share falls
November 10, 2012
by Siddharth Philip
Almost two decades after entering India, here's what General Motors Co. and Ford Motor Co. have to show for their efforts in Asia's third-largest automobile market: combined market share of about 6.5 percent and falling.
GM's sales in the country have tumbled 17 percent in the past 10 months and Ford's deliveries are off 8.4 percent, according to researcher Intelligence Automotive Asia.
Though the U.S. carmakers say they're optimistic, they face mounting competition from Toyota Motor Corp. and market leader Maruti Suzuki India Ltd., which makes 4 in 10 vehicles sold in India.
The wrong cars priced above rivals' offerings, coupled with poor service, are among the reasons analysts cite for the Americans' lack of progress in a country that's projected to overtake Japan as the world's No. 3 passenger-vehicle market this decade.
While they are stepping up efforts to cater to Indian motorists, the Detroit automakers have yet to show they can reverse their slide toward irrelevance.
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