Paradox of emerging economies: Turning to emerging markets for new growth engine accompanies higher risk of failure

A Honda factory in Manesar, Haryana in Northern India bites the bullet to produce scooters. Manufacturing and labor costs have soared since last year, but they have not been able to raise the prices due to fierce competition among increased number of manufacturers. If Honda raises the prices just a little, consumers would turn to another competitor. Honda is having a life-and-death struggle in the India market against countless local competitors as well as global giants like Suzuki.