Japanese Foreign Direct investment in Indian Automobile Sector Evolution and Practices

Abstract

The paper aimed to examine whether the Japanese automakers find India an ‘Investment Friendly Nation’ based upon their experience in India so far. It analyses the ‘Japanese Management Style’ and observed the advantages and disadvantages it offers through a comparative analysis with the management style prevalent in the Indian auto companies especially in two major auto companies in India such as Maruti Suzuki and Honda. It sought to identify the major challenges faced by the Japanese car makers while investing in India and the steps taken in form of policies and practices to tackle such challenges. The findings included that Japanese companies would emphasise on long term vision and planning. Quality and customer satisfaction are key to their growth and market penetration. Japanese auto majors values ‘trust’ especially in joint ventures like Maruti Suzuki. Skilling workers especially at lower end is important for success in auto sectors.