KATHMANDU: Even in a country where around four million cars are sold every year, not all automakers can survive. India, now the world’s fourth-largest car market, has proven to be one of the toughest places for global brands.
As local manufacturers continue to grow stronger, several international players have been forced to leave despite India’s expanding demand for vehicles.
At present, about 360,000 cars are sold in India each month. Local brands such as Maruti Suzuki, Tata Motors and Mahindra dominate the market, while Hyundai and Kia from South Korea and Toyota from Japan remain the only foreign brands with stable sales. For many others, India’s highly competitive and price-sensitive market has been difficult to sustain.
Over the years, several well-known names including Ford, Chevrolet, Fiat, Datsun, Mitsubishi, Opel, Peugeot and Daewoo, have stopped production. Among them, four brands stand out as major examples of global companies that couldn’t keep up with India’s growing local competition.
Ford
Ford’s exit in 2021 surprised many loyal customers. The company was known for models like the EcoSport, Figo and Endeavour, valued for their strong build and performance. However, Ford suffered losses of over $2 billion and couldn’t compete with Tata and Mahindra’s affordable, newer models. Slow product launches also hurt its sales, leading Ford to end production in India.
Chevrolet
Chevrolet, part of General Motors, was one of the first global carmakers to leave India. After 21 years, it closed its plants in 2017. Known for models like the Beat, Cruze, Spark and Tavera, many sold in Nepal, Chevrolet couldn’t compete with Maruti Suzuki and Hyundai’s cheaper, fuel-efficient cars. Poor after-sales service and an outdated lineup led to its exit.
Fiat
Italian automaker Fiat entered India in 1996 and stayed for 21 years before ending production in 2019. Known for models like the Punto, Linea and Avventura, Fiat also earned fame for its 1.3-liter Multijet diesel engine, called the “National Engine,” used by many Indian brands. However, rising emission standards and falling sales made it hard to stay profitable. Fiat’s parent company, Stellantis, now operates in India through Jeep and Citroen.
Datsun
The Japanese brand Datsun, owned by Nissan, returned to India to attract budget buyers with low-cost, fuel-efficient cars. However, weak build quality, limited features and poor safety ratings led to low sales. Service and spare parts issues added to the problem. With no recovery in sight, Datsun stopped production in India in 2022 and Nissan later closed the brand worldwide.
Other brands that couldn’t stay
Several other automakers also failed to make their mark in India. Mitsubishi slowly withdrew by 2020 after struggling to introduce new models and maintain dealers. Opel, a German brand under General Motors, exited in 2006 due to high maintenance costs. Peugeot, from France, left much earlier in 1997 after a failed joint venture. South Korea’s Daewoo, once popular for models like the Matiz and Cielo, shut down in 2003 following a financial crisis.
Even iconic brands with deep roots have struggled to survive in India. Hindustan Motors, a mainstay of the Indian auto industry since the 1940s and Premier Automobiles Limited (PAL), established in 1944 and producing its first vehicles by 1947, both eventually shut down.
