Easier Ways to Forge Automotive Joint Venture in India
The automotive sector in India is one of the fastest growing in the country as well as in the world and is naturally, in the radar of most automobile makers from around the world. However, setting up automotive joint ventures in India isn’t really simple. The Indian automotive market, although a massive one, is very competitive and it could be a nightmare for a foreign business to set up shop through all these challenges.
Getting around these challenges to fulfill all the documentary and financial requirements of setting up an automotive business can frustrate most foreign investors that lack the necessary market intelligence in India. And this is where the need for specialized business management services is felt by foreign automotive companies that want to set up their business in India. Getting a foothold in a huge market like India requires massive efforts that will offer insights on:
o Comprehensive customer data
o Level of competition
o Market penetration
o Quality standardization
In many cases, foreign businesses had set up automotive joint ventures with subsidiary companies in India to kick-start their businesses only to learn that this isn’t the wisest thing to do. Foreign companies that are not guided properly or ignore good advice, end up with a subsidiary company that is not really needed to get started in India. A specialized business management service provider can offer excellent workaround with insights on local market conditions and help in planning the right strategy to enter the market smoothly.
One of the most important aspects of any business is undoubtedly, how it is able to sell its products or services. In the automotive sector in India, after-sales service is perhaps a more important factor in determining the success or failure of a company, than anywhere else. That’s because of the very poor condition of roads here which results in more wear and tear of vehicles resulting in more frequent breakdowns than most other established markets anywhere else in the world. As a result, the top automotive businesses in India boast of a huge network of servicing centers all over the country.
Many overseas companies, dealing in vehicles equipped with advanced technology as well as brand value, are sometimes, hesitant to start operations in India with full scale production facility. The best option for such companies is to set up an assembling plant where they don’t have to bring in the technology but just assemble their vehicles after shipping them into the country in knocked-down or semi-knocked down condition. However, setting up an assembling plant in India is easier said than done without the help of a good business management service provider.
There are a number of other areas where an overseas company looking for automotive joint ventures in India might be interested in. These could be, setting up a low cost production facility with a small workforce or setting up supply chain management infrastructure among others. In each of these cases, it will need the services of specialized business management services to get around procedures and compliances that can be quite challenging.
AGS Tech Exim is a specialized business management consulting firm with a formidable track record of helping set up businesses including automotive joint ventures in India. The firm’s six decade long history has endowed it with unbeatable market intelligence in India that overseas clients can leverage.