India ahead of China in Automobile Exporting

Sept. 8, 2009 - PRLog -- China may be considered as world's shop floor but India is suddenly speeding faster when it comes about automobile exporting. As per the records, the total export of India during January- July, 2009 has triggered to 2.30 lakh cars, vans, trucks. China exporting has tumbled by 60 per cent in the same period and has reached to 1.65 lakh units.

India's domestic sector may be only 19 per cent of Chinese sector and it has overtaken the USA for becoming world's largest one. The 'Made in tag' on mainly small cars has captured worldwide cachet, which in turns help automobile sector to grow even when other nations are suffering a slump.

Industrial experts pointed out that India is doing well due to its liberal investment policies and high quality manufacturing which is proving helpful in the development and selling of new automobile models.

India itself is presenting enormous opportunities in small cars sector, providing their big volume status to the local marketplace. But due to the global recession and various offered incentives for fuel efficient low emission vehicles in important markets like Europe and USA and many others, India has also evolved out as a potent point for varied companies.

Due to the low labor costs and highly tailored manufacturing tax(8 per cent of excise duty), India's small car manufacturing has transformed itself into a highly integrated and competitive option which lots of companies are opting for- Suzuki, Hyundai, Nissan, General Motors, Toyota and many more. On the other hand, China is a big car producer and has been badly hit due to the international slump in demand following the global recession.

Mr. Rakesh Batra of National Automotive Leader for E&Y in India asserted that"Among major reasons for India is a favorable investment regime. While India allows for 100% FDI in auto sector, in China you can only be present through a joint venture with a local partner. If you use the country as a major export base, you have to share the profits with your JV partner, which no company would like to do." India also scores high due to its efficiency in research and development brains.  

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