No market is negligible, Say to this any business and will laugh at your mentality - y
Well he says this but all three largest Japanese motorcycle brands have assembly plants locally (soon going into indigenous/local content). Plus there are half a dozen local motorcycle brands. Sounds like "sour grapes" to me.
The story is the same for Indian electronic and home appliance brands like Godrej and Videocon, among others from India. They stayed in Bangladesh for twenty years but in the end exited the market. No one bought their products.
These Indian brands also exited Bangladesh market because they don't get the same props/benefits here, which they get in the protected license raj Indian market. Plus for most of the Indian stuff - quality is not up to snuff, definitely not like Japanese or even Chinese products. People know about that here in Bangladesh.
Now - even local brands are capturing most of the local market, such as Walton etc.
Then Bangaldsh has access to better cars and Indian company is simpl y not able to make better product - competition is tough
You hit the nail on the head. India is still more or less a closed market. Bangladesh even in Pakistan times was a wide open market.
When you have a closed market you have a license Raj situation, dominated by inefficient companies exploiting special govt. favors.
Indians say that their market is open, but in reality it is not. Far from it.
Low quality goods sold in a protected market to line the pockets of corrupt bureaucrats - egged on by opportunist industrialists.
Ok, so they don't want to burn their cash to expand in a piss-poor market but will keep selling their products through various distributors...
Is this a failure?
At the end of the day, Mahindra products did not sell (some did) and they could not "cut it". End of story.
