India is not only difficult to make Chinese brands gain market breakthrough, but also in 10 of China's auto industry after a strong opponent

International Herald Herald reporter William Haidong, WANG Xiao-jie from New Delhi and Beijing in the eyes of all international automobile giants, India markets can not be ignored. Suzuki, Nissan, Hyundai, General Motors, Ford, Volkswagen, Renault, Toyota and other industries in Taiwan have set up factories in India and compete expand investment scale, but with particular emphasis on the development of low-end brand.

But people puzzling that the low-end market has always been good at Work hard but the local Chinese automobile enterprises have failed to enter India. Last year in May, China's independent brand Chery Automobile to the media that India is working with the two car makers to start negotiations to set up factories in India, and triggered a "QQ into India," the suspect. One year later, when the "International Herald Herald" on Chery, has been told to "have yet to find a good partner."

A survey found that even if China's car into India, are also unprofitable.

Global giants bet India

In India, small cars, especially low-end car has become all the auto giants focus on the fight focus. This is related to lower the purchasing power of Indians. Most Indians income is not high, and many rely on loans to buy cars. It is understood that the dollar price of vehicles to Liu Qiwan primarily products of Suzuki Motor India has occupied more than 52% market share.

For this reason, the car sales in India have made low-priced card: the Tata Group launched in early 2500 U.S. dollars at the NANO, Nissan also announced recently with the French Renault car company and Bajaj, India set up joint venture , The same low-cost production of motor vehicles; Hyundai will start in May this year against the large Indian rural consumers propaganda offensive,Á¦ÍÆequipped with gas engines, 30% of the cheap fuel-efficient cars "Santro"; Toyota is planning its Two factories in India, cheap car of the attack, is expected to total investment of 350 million U.S. dollars.

It is worth mentioning that the international automobile giant has not satisfied the domestic market in India, Mining and India to build export processing bases, to meet global demand. General Motors has developed a blueprint for development in India, the existing factory in India to increase production at the same time, but also the creation of new works, made it clear that India to build its Asian base for the mainland's small cars.

This is with the Government of India coincides with the idea: the country in September 2006 issued in 2016 to 10 years of automotive development planning, the objectives include: the next 10 years India will strive to become a global automotive manufacturing center in 2016 to become The world's seventh largest automobile manufacturer - the first in India than the current 11 world ranking to raise four.

Chinese brands of concern

Various international brand cars in India Zhengqidouyan street, but almost no one is Chinese brands. New Delhi, this reporter interviewed the owner of a taxi companies Raj.

Raj told the "International Herald Herald", this does not mean that the Indians have a negative impression of China's car. He said that, in fact, the Chinese car performance, appearance than those international brand car models in India running better, "the car giant's car production in India is more than 10 years ago, or even a few decades ago was out of its own Products, they quickly abandoned the production line to move to India, will be able to cash in, and China's own-brand cars and more recently the research and development, performance better than many. "

Raj pointed out that although he and his colleagues would like to introduce to China, but India's vehicle imports to 130 percent on the high taxes, second-hand cars also as high as 105 percent tax rate, so the final price of cars in China than Tata, Suzuki also expensive, there is no guarantee that price advantage.

India set up joint-venture factory in what is «Beijing, a senior auto industry experts Jia Xinguang told the" International Herald Herald ", India on China's automobile manufacturing industry is very beware, market access will be difficult. Indian media has always been very interested in China's national brands Chery, "Indians" was the author said: "With the Chery into India's plans put on the agenda, not only GM, Toyota Motor was closely watching China's development, local car manufacturers Tata and Malu Di have to observe our own position of the championship. "

India local enterprises and foreign-funded enterprises are in competition for low-end car market, China's automobile share a cup of soup is easier said than done, "perhaps the Chinese car into the India also earn less than the money." Jia Xinguang said.

Competitors are expanding

Although China's car had not yet opened the door of India, but less than the scale of the Indian automotive industry in China. However, Jia Xinguang said that the Indian automotive industry rather highlights of the future will be a direct competition with China.

He believes that the Indian industrial policies and reasonable, so that local and foreign car brand of peaceful coexistence. Planning its 10 years made it clear that the Government of India on cross-border investment vehicle manufacturers to streamline administrative approval procedures, and to give taxation, land approval, the availability of resources, and other aspects of concessions. Even in this case, the Indian domestic car can still maintain a 16% market share, it is hard to Chinese brands in the local community to do.

Secondly, the Indian government to encourage independent innovation. In accordance with its plan, India's first focus on automotive components manufacturing, and further development vehicle, local car now technically independent innovation rate of 90 percent, far higher than similar enterprises in China. China's current overall development of the automotive industry speed, lack of innovation has encountered a bottleneck. This concept of the future India will export cars and spare parts for China's independent brand of competitive pressures, it is more worthy of attention the topic.