China is known to be a strong automobile market for global automakers, whereas India though a potentially strong market fails to attract numbers like its neighbors. Ratan Tata, Chairman for Tata Motors is of the belief that India deserves to be a bigger car market and needs the automobile manufacturers to find out reasons why lesser cars are sold here. The point was put across at Frost & Sullivan Growth Innovation Leadership (GIL) 2014 Summit.
Ratan Tata has pointed out that cars in India are expensive from a consumer perspective. He stated that carmakers in the country are in favor of low-scale high-margin profits rather than focusing on expanding the market. Speaking more on the occasion, Ratan Tata added, “Indian car market doesn't deserve to be 3 million. We need to ask ourselves have we made cars too expensive for consumers to own. Have we focused on a low-scale, high-margin business. All I can say is that there is no reason for the car industry looking at the sales of 3 million when a country like China had a lower sales and lower manufacturing then we did, has now touched almost 15-18 million units today.”
Emphasizing on the need for encouraging youths in the development process, Ratan Tata stated, “All the innovation is happening outside India, by Indians but outside India and we need to ask ourselves why. Part of that why lies in the fact that we are somewhat concerned about new ideas from young people. The same people are able to voice their thoughts, however audacious they may be or ordinary they may be. So most of us in the higher levels of industry have to listen and believe the young. If you are able to do that you will encourage India to be one of the innovators.” At the summit Ratan Tata was also awarded the GIL Visionary Leadership Award.
