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In the coming 2005, GM, Toyota, Suzuki, Fiat, Volkswagen, Rolls-Royce, Hyundai and other multinational companies in India, some of the expansion of production capacity, and some new investment, are too busy.
The industry generally believes that the Indian automobile market is becoming another investment hot spot for multinational corporations. Since the beginning of this year, Chinese auto companies have continued to set off an upsurge of exports, such as in Russia, Malaysia, and the Netherlands... However, for India, an important emerging market, China’s major auto exporters have yet to make major moves. Is the time not yet met or otherwise
"Secret"? Recently, the reporter interviewed several representative automotive companies.
Indian car market
Growth potential cannot be ignored
In 2004, India's GDP growth rate reached 8.2%, India's auto production and sales exceeded 1 million units, sales growth rate is as high as 17%, and auto parts industrial output value maintained at an annual growth rate of 30%. According to Indian media forecasts, by 2010, the annual sales of passenger cars in the Indian automobile market will reach 2 million units, and in 2015 it will increase to 4 million units. The total output value of the auto parts industry will reach 20 billion U.S. dollars.
With the strengthening of India’s road network construction and the acceleration of the speed with which vehicles are used, the domestic truck and passenger car market is booming. The average annual growth rate is 30%, which has reached a market size of approximately US$5 billion. The development momentum of India’s auto brands is even stronger. Tata Motors plans to invest 60 billion rupees (about 1.1 billion euros) in the next three years, doubling its production to 2010 and reaching an annual production capacity of 1 million vehicles.
Faced with business opportunities
Through interviews, the reporter found that for the potential automobile market in India, Chinese companies did not see it, but generally felt that they were not yet fully prepared, so they did not dare to move rashly. Mr. Wu, Asia regional manager of the Overseas Business Department of Zhengzhou Yutong Bus Co., Ltd., who has just signed an export order with Cuba’s Astro Company, made it clear that Yutong will not use India as a product exporter for nearly 2 to 3 years. “Yutong bus exports are just a matter of recent years, and many aspects of the experience are still not very mature. Moreover, India’s industrial base is not weak. Tata Motors produces passenger cars at a low price and has a large market share. Transportation to overseas will increase a considerable part of the cost, and there will be no competitive advantage in price, which is in conflict with the local Indian consumers’ great concern about the purchasing psychology of prices. Moreover, the Indian government’s strict protection measures for the local automobile industry make it very difficult to enter the market. High, the import tariff of the whole vehicle should be as high as 45%~100% according to the displacement. In comparison, the vehicle manufacturing technology and production equipment in Southeast Asian countries are not able to keep up with the average level in China, so the possibility of entering and development is even greater.â€
Great Wall Motor Marketing Minister Shang Yugui and Chery Automobile Overseas Business General Manager Zhang Lin all revealed to reporters the difficulty of entering the Indian market. They told reporters that India is not only
Imported vehicles are subject to higher technical access requirements, exhaust emissions must meet Euro III standards, and foreign vehicles imported must pass a series of complex certification procedures in India. Excessive import tariffs also deter domestic companies. Therefore, the best way to enter India is to establish a CKD assembly plant, otherwise there will be no competitive advantage.
Zhang Lin told reporters that the rapid development of the Indian market is a matter of the past year or two. The development of the local auto industry in the field of mini-vehicles is more prominent. “This will not only increase the Indian government’s efforts to protect its industry, but also allow The micro-vehicle market has become more competitive in the small profits. This is a problem that must be considered when Chinese companies export their products.†If it is building an assembly plant locally, Zhang Lin believes that this requires Chinese companies to make multiple trade-offs on the investment environment and return cycle. , it takes a long time to plan. Currently, Chery is considering specific export methods.
A person outside Beiqi Futianhai frankly told reporters that at present, many domestic companies have already seen opportunities in the Indian market. However, since the Indian market is a brand-new field, there is no mature experience to learn from. Many companies are therefore worried. . He told reporters: "The tradition of the Indian automobile market has followed many years. It is the government that requires dealers of auto companies to form a community. That is, manufacturers have their own sales outlets vertically, which makes it difficult for Chinese cars to be sold in the Indian market. Although many cars The giants have entered India, but there are not many foreign companies that actually form a sales scale."
When you enter India, you cannot rely on selling cars alone.
The Indian market seems to be using higher tariffs and technical protection measures to remind automakers around the world that it is not easy to simply enter the country through product exports. To make long-term profit, it must make greater contributions to the Indian auto industry.
Recently, Yangzhou Yapu Automotive Plastics Co., Ltd. has entered the Indian market by exporting plastic design, development, quality control, and manufacturing technologies to India, and has given many auto companies in China, especially those of its own brands. Provides a brand new idea. Sun Yan, general manager of YAPP, told the reporter that YAPP's move is not only for the sake of considerable technology transfer costs, but as an opportunity to in-depth study and understand the market conditions in India and Southeast Asian countries, to find and discover business opportunities for the next acquisition Local companies or the establishment of YAPP production bases abroad will lay the foundation.
Experts in the industry pointed out that the cooperation between Chinese auto companies and India cannot simply export vehicles. Instead, they must constantly expand their thinking and develop new ways and means of cooperation. Among them, the use of technology, capital, and resources of both parties to integrate and learn from each other is a good idea. A win-win cooperation model.
In the eyes of many people, India has always been a mysterious country. The people of the country have limited knowledge of it. When talking about studying abroad, the general statement must be said to Europe and the United States, followed by Japan and South Korea, India does not seem to be in our vision. According to reports, India’s engineering and technology levels in the areas of information, machinery, and new energy are quite prominent. Just as far as the automotive industry is concerned, India also has aspects that are worth our attention and learning. Now, in the face of India's emerging automotive market, China's vehicle companies are generally watching and are afraid to get involved. At the very beginning, when Chinese cars began to enter the Arab, Southeast Asian, and European markets, they were not optimistic about the people, but they are also developing a world there. In fact, after successfully entering more and more international markets, Chinese cars should increase their confidence in entering other markets, dare to be good at opening up new areas, and not let the business opportunities already seen slip away.
Our reporter Wang Xin