The strategies of Japanese firms in emerging markets: The case of the automobile industry in India

To inform understanding of the internationalisation of Japanese firms to emerging markets, this study assesses the expansion of the Japanese automobile industry to India along three key dimensions: (i) internationalisation strategy; (ii) corporate agglomeration; and (iii) marketing strategy. We find that majority-owned joint ventures (JVs) and wholly owned subsidiaries are more frequently associated with more recent investment projects relative to minority JVs. We also observe four centres that have emerged on an industry level, suggesting that what constitutes an agglomeration in emerging markets may involve a wider geographic area and more numerous business clusters than is typically the case for Japanese investment in other contexts. Finally, we note that Japanese firms have substantially extended their marketing repertoire in India.