Is such enthusiasm justified when India’s carmakers are battling slowing sales and production cuts? After all, it is not easy to compete with incumbents such as Maruti Suzuki, which rolls out one in every two cars sold in the country. For Indian counterparts such as M&M and Maruti Suzuki, such collaborations help cope with rapidly changing technology. Therefore, Maruti Suzuki is a neat fit in the equation. Meanwhile, such alliances may bring in adversities of cannibalization of market share and drop in sales volumes, notwithstanding the risk of failed alliances.

Source: Mint April 21, 2019 18:45 UTC