India recognized as one of the largest consumer markets in the world, is now witnessing a shift that has prompted foreign companies to reconsider their strategies. Several foreign brands that had once exited the Indian market are now returning. Among them are Ford, Harley-Davidson, Carrefour — one of Europe’s largest retail supermarket chains — and the Chinese apparel brand Shein. Many more companies are reportedly preparing to re-enter India. It is believed that the country's growing consumer base and recent changes in the commercial sector have prompted this reassessment.
Ford's Comeback
Ford first entered India in 1995 in partnership with Mahindra. However, the company ceased its operations in India in 2021. This time, Ford is returning with a new strategy. The company plans to start manufacturing vehicles at its Chennai plant, mainly for export to global markets. Rather than focusing on domestic sales, Ford aims to position India as an export hub. Previously, models like the Ford Endeavour and EcoSport, manufactured in India, were exported to 37 countries. The Chennai plant has a production capacity ranging from 200,000 to 340,000 units.
Harley-Davidson's Re-entry
The American motorcycle brand Harley-Davidson ended its decade-long stint in India and exited the market in 2021. However, last year, Harley-Davidson made a comeback by partnering with Hero MotoCorp. The collaboration resulted in the launch of the X 440 model, which, however, did not gain the expected traction in the market. Nevertheless, it is reported that Harley-Davidson plans to introduce around six new models shortly.
Carrefour Returns to India
The French retail chain Carrefour exited India in 2014. Despite several attempts to re-enter the market, the company had not succeeded until recently. Carrefour announced a return to India in collaboration with the Dubai-based Apparel Group. The first store will open in Noida, and Carrefour plans to expand its presence to Kerala in the next phase. Carrefour is Europe’s second-largest retail chain, with 14,000 stores in 40 countries. The brand is also well-known to expatriate Malayalis, as it has a significant presence in Gulf countries. Notably, Carrefour, which once had a substantial presence in China, has now entirely exited the Chinese market.
What Has Changed?
India is now considered one of the largest consumer markets globally, a fact that global brands can no longer ignore. The rapidly growing market of 1.41 billion people, coupled with new economic reforms, is a major factor attracting foreign brands back to India. Most companies have developed specific plans tailored to the Indian market for their return. Reports indicate that the Indian consumer sector experienced a 4% growth in value in the first quarter ending in June compared to the previous year.
Concerns About Local Market Impact
At the same time, concerns are being raised that the return of foreign brands might further harm an already struggling local market. There is a call to empower local traders more effectively with the help of technology. While foreign brands undoubtedly bring in significant investments and job opportunities, it should not be forgotten that these brands are accessing a market of 1.41 billion people, as organizations have pointed out.