At present, where the majority of people believe that the domestic automotive industry in India "cause problems", low-cost Indian firms control the threats posed by quietly approaching.

Transfer orders

Recently, Warner Sheng-long (Ningbo) Co., Ltd. The business manager GU Chun-feng said that the current export companies in South Africa a number of automotive components business, and India are brothers factory game. The screws and other low-end auto parts, we have to recognize that India's cost advantage. the front line, he really felt the pressure of competition from India. Warner Sheng-long (Ningbo) Corporation is the United States BorgWarner Group (the world's largest auto parts maker) opened a subsidiary in China, its rival is the group's subsidiary in India.

GU Chun-feng said that Europe and the United States and other countries have begun procurement of parts and components to India's support of the trust industry. According to reports, after India's business with Chinese companies are learning, but with the Indian factories in the manufacturing, technology, cost control and other aspects are also gradually increase, from Europe and the United States in order to tilt the start.

Yap, director of the Office auto parts Limited Wu Jin said that Yap eyes Indian automotive plastic fuel tank system there are still large areas of the market space.

It is clear that China as a low-cost procurement of parts and components of the advantages of other Asian countries are facing the challenges, in particular the Indian auto ancillary market, is attracting the world's car manufacturers.

October 2007, Honda announced that, in South-East Asia bilateral free trade agreement (FTA) implemented, and Honda factory in India's cumulative production reached 300,000, Honda will use the low-tariff policy in India, engine parts and components procurement. Daimler Chrysler Group also announced the end of 2007, within two years from India to the procurement of parts and components from 76 million U.S. dollars to 100 million U.S. dollars.

International Group of Magna parts from India is also considering purchasing parts and components. Magna Group, Make Huo-Gen that the next 10 years, India rather than China's automotive business will become the focus of attention. India's ample raw materials, particularly high-quality steel. At the same time, the Indian labor force more competitive than China, while China's labor costs are on the rise. It is learned that China's manufacturing, labor costs are 250 to 350 dollars, while India such as auto parts manufacturing workers monthly salary of only 60 to 70 U.S. dollars.

India's rise

With the large number of parts and components procurement to gradually shift the attention of India, its auto parts industry in the export business is also growing.

In recent years, India's auto parts exports have maintained a more than 30 percent growth rate. In 2002, India's auto parts exports was only 578 million U.S. dollars, and by 2005 this figure had risen to 1.4 billion U.S. dollars. For example, in the past five years, only the United States from India on the procurement of auto parts from 179 million U.S. dollars to 463 million U.S. dollars (compound annual growth rate of 26.8 per cent).

Focus on the development and innovation, India is also rapidly developing parts and components manufacturing enterprises one of the main reasons. If the products based on user requests to improve the manufacturing company to change the design ideas and adopt the most advanced processing technology independently forging products, the company's rapid growth.

At the same time, the positive development of the situation, India is to stimulate the local parts and components enterprises external expansion. India's largest domestic manufacturer of automotive battery Minda Industrial Co., Ltd. (MIL) in 2006 to fiscal year 2007 sales increased by 44.22 percent, net sales revenue reached 38.66 billion rupees (about 4.315 billion yuan). In fiscal year 2005 to 2006, the company's net income was 26.805 billion rupees. At present, Minda company's next step is to compete in the world, and Moquancazhang ready to seize the Southeast Asian market.

Indian auto parts Manufacturers Association (ACMA) said that in 2012, the Indian automotive components industry will be the proceeds of the annual growth rate of 15 percent growth. To 2015, the potential of this market transaction volume will reach 40 billion to 45 billion U.S. dollars, of which the proportion of exports will reach 50 percent.

Competitive pressures

China's Auto Industry Advisory Committee noted that Chen Guangzu, automotive components at high school three low-level, high-end automotive components in China does not have the advantage, in the end parts in recent years begun to develop. However, in low-end manufacturers such as batteries, tires, door, small motors and so on, China's exports are indeed India, Vietnam and other neighboring countries of the squeeze.

In fact, China and India, low-cost labour in India, language and background with software talents have many advantages, it is supporting many parts to transfer the ideal location to set up factories. GU Chun-Feng also said that India's steel industry development better, coupled with India after a British colony, the administration is also more of Europe and the United States, international buyers to more easily accepted.