Mukesh Ambani, Chairman of Reliance Industries.
Reliance does not sell cars: Mukesh Ambani is one of the richest people in India and his Reliance Industries works in different sectors. You may have seen salt, SIM, gasoline, etc. of Reliance in the market, but you may not have seen Reliance cars. Mukesh Ambani is active in all major sectors but not in the automobile business. Have you ever wondered why Mukesh Ambani, who runs a major company like Reliance, doesn’t sell cars? Let’s consider the reason for this.
Reliance Industries’ core businesses include petrochemicals, oil refineries and telecommunications. Additionally, Reliance also operates in the retail sector. but the trust automobile They have not entered the sector. What is the reason that prevents Mukesh Ambani from manufacturing cars? After all, despite owning such a large industry, why do you avoid selling cars?
Reliance’s core business
Reliance’s main focus has been on core sectors such as power, petrochemicals and telecom. Most of these businesses are those where Reliance deals directly with business corporations. Another successful business model is telecom, where the company directly connects with customers through Jio.
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1. Preference for B2B business
This shows that Reliance’s working model is primarily business-to-business (B2B). There is no direct interference from customers in these business models. Jio is a company that works on a business-to-customer (B2C) model. In the case of Jio, the company connects with customers and through Jio, Reliance has a network of several million people.
It is clear that Reliance primarily runs its business through B2B. But selling cars is a B2C business model. In the automobile sector, dealings are also carried out directly with customers. But the automobile sector is different from the telecom sector. Recharging Jio is cheap, but buying a new car requires a big budget.
2. Customers and supply-demand
If you go out to the market to buy a new car, you will have to spend at least Rs 5-6 lakh for a suitable car. There are many customers who fulfill their dream of buying a car through a car loan. Apart from this, the supply of cars is greater than the demand. But Reliance’s trend has been a business where supply is lower and demand is higher.
3. Capital investment
One reason is that the automobile industry requires a large investment. It is necessary to invest time and money in many tasks such as research and development, manufacturing and marketing. Therefore, instead of investing a lot of money in the automobile sector, it is better to invest money in those businesses where Reliance is already strong.
4. Competition in the market
There is already tremendous competition in the automobile sector. International brands like Maruti Suzuki, Tata Motors and Mahindra are in the race to sell cars. All of these brands are long-standing players in automobile sales. The competition from these brands will have to be faced with enormous investments.
5. Renewable energy
Reliance is now moving into the emerging renewable energy business. But the automobile sector runs on fuel. Therefore, there may be a conflict of interest in both sectors. The trend of electric vehicles is growing, but not enough to start manufacturing and selling cars based on it.
6. Electric vehicle industry
However, Reliance is definitely in the business of EV technology and batteries. But B2B business applies here too. If Mukesh Ambani starts manufacturing cars, then there may be a conflict with this business.
These are some of the major reasons preventing Mukesh Ambani’s Reliance from selling cars. Every industry does business taking into account its business model and objectives. Perhaps Reliance does not find the automobile sector suitable, which is why no steps have been taken in this direction.
