Why have European car makers struggled to succeed in India?

Opel's and Peugeot's rise and fall capture the story of European car makers in India, who won hearts, but have yet to make any significant impact in one of the fastest growing passenger vehicle markets in the world. The share of European cars in the Indian market is under 4%, while the Asian giants command over 50%. NonEuropean carmakers continue to be in top gear, luring the "Value-conscious, yet not budget-constrained" buyers in India by flaunting an enviable fleet of 72 models across different price points in the mass-market segment. European carmakers have faced challenges in markets like India due to misalignment between their product portfolios and local consumer needs, as they focus on highprofit markets like Europe and China. "Why should Indian customers pay more for 'benefits' which are not as per their needs and desires? The Indian customer is value-conscious, not budget-constrained," says a former India CEO of a European car company, who does not want to be named. India has a huge population that is set to graduate from two-wheelers to four-wheelers, but Western brands have consistently failed to grasp nuances like the substantial differences between first-time buyers in India and Europe. In their defence, the European car makers ET spoke to unanimously point out to the innate differences in the regulatory environment between India and Europe that makes devising a long-term strategy difficult. With regulations changing rapidly across the world and consumer behaviour in the developed world typically not about "Owning" but about "Experiencing", European car makers must change the way they look at the Indian car market, says Chattopadhyay.