Three months ago, optimism over Jaguar Land Rover was so high, its Indian parent’s shares were up almost 80 percent this year, valuing Tata Motors Ltd. more than Porsche AG’s holding company. Reality may be setting in.
As India’s car market took off in recent years, global luxury brands focused on selling sumptuous sedans and big sport utility vehicles in Mumbai, Delhi, and Kolkata, home to the bulk of the country’s wealthy. Germany’s Audi shows that’s changing.
Mahindra & Mahindra Ltd. and Ford Motor Co. are preparing for a rebound after the worst sales slump in India in a decade. They are priming new capacity, betting Prime Minister Narendra Modi will spur demand.
Ford Motor Co. tripled sales in India with the introduction of the $8,400 Figo hatchback last year. Demand for the entry-level model is now slumping and the company is counting on persuading customers to buy a car that may cost twice as much.