American Auto Brands Struggle in India: Exits, Niche Plays, and Future Outlook

• American car and two-wheeler brands hold a marginal share in India's vast automobile market, with PV sales at 0.10% and two-wheeler sales at 0.0013% in CY25.
• The decline has been consistent, with American PV brands' share falling from 1.45% in CY21 to 0.10% in CY25, while non-American manufacturers dominate.
• Analysts attribute poor performance to product-market mismatch, limited localization, high operating costs, and regulatory complexity.
• Jeep has found a niche in premium SUVs, and Harley-Davidson regained momentum through localization, while Ford and General Motors exited.
• Future success for American brands in India hinges on product customization, deeper localization, wider service networks, and potential tariff reductions from the India-US trade deal.

Why It Matters: American auto brands face significant challenges in India due to market mismatch and localization issues, requiring strategic shifts.