India Will Soon Overtake China in Car Exports
An article was published on Gasgoo.com on September 11th, 2009, that talked about India passing China to be the world’s export hub for small cars.
Though China has long been known as the leading low-cost manufacturing source, India has only been known for her outsourcing services and her highly skilled labour. But she has now proved better than China with her low-cost, high-quality auto manufacturing industry, by taking over the mantle of being a bigger exporter of small cars than China.
Bloomberg reported that while Indian exports have grown by 18% with sales of nearly 230,000 cars, vans, SUVs and trucks during January to July of 2009, China’s auto exports dropped by almost 60% during the same period to around 165,000 units. And this edge over China in exports is despite the fact that the Indian domestic market is just about 19% of China’s.
Further, with 95% of the estimated export of almost 690,000 passenger vehicles in 2015 being in the small car segment, India is all set to join Japan as one of the world’s leading small car manufacturing countries. Currently, Japan is at the head of the table with nearly 3,000,000 cars.
One of the major reasons for this performance, Bloomberg reported, is India’s policy of allowing foreign auto manufacturers to set up base independently in India. In China, local partners are mandatory.
According to an expert from a Chicago based company, Booz & Co., India’s biggest opportunity in the auto industry is her small car.
The world now recognizes that small cars from India stand for quality when compared to China’s.
