Foreign car manufacturer companies are getting worried from Indian market.

Foreign car manufacturer companies are getting worried from Indian market.

Amid the slowdown in the vehicle market, foreign car makers have started feeling nervous in the Indian market. The parent Japanese company Suzuki Motor of the country's largest car maker Maruti Suzuki said that it is no longer very enthusiastic about the Indian market. The company has lost confidence in the Indian market after registering a steady expansion in the Indian market for seven consecutive years. India is the fourth largest vehicle market in the world. Suzuki Motor reported a decline in its profit this week amid a decline in Maruti Suzuki sales.

Suzuki Motor not expected to grow continuously in India.

According to a report by Financial Express, Toshihiro Suzuki, President of Suzuki Motor, said that we do not think we will be able to continue to grow further in the Indian market. Maruti Suzuki had seen a steady increase in sales till January this year, but the company has seen a steady decline in sales from February to September.

Many other companies are also reviewing their strategy.

Customers' affordability has been affected due to the poor condition of non-banking finance companies, high taxes on vehicles and weakness in the rural economy. Foreign car makers such as Ford, Volkswagen and Fiat are also considering changing their strategy after failing to make a place in the Indian market. India is mainly a market for small cars.

Ford decides to sell Mahindra & Mahindra, majority stake in Indian unit

IHS Markit's vehicle sector expert Puneet Gupta said car makers have become very cautious about future investment in India. Most foreign companies are reluctant to introduce new cars in India. Ford has decided to sell a majority stake in its Indian unit to Mahindra & Mahindra.