Didn't know there was an Asian auto derby till recently onlee....
India is gaining a lap as its exports leap ahead, thanks to quality and engineering that Chinese carmakers can't match {for now, you mean.}
Hmmmph. So the wal-mart strategy worked in reverse this time in the autos sector. How quaint.Delhi - For years, global automakers have fretted about the day when Chinese manufacturers start exporting cars en masse, driving down profits worldwide. But the bigger challenge may come from China's neighbor, India. This year through September, India exported more than 292,000 cars, up 32% from the same period in 2008, while China's car exports fell 57%, to about 221,000.
In contrast to China, where exports come mostly from domestic companies, India's biggest exporters are the global manufacturers themselves. They like the country because it's a fast-growing market with plenty of smart engineers; developing a small car in India costs about $225 million, vs. some $400 million in Europe, estimates researcher CSM Worldwide. While costs in China are on a par with India's, China hasn't penetrated the European countries where India is strongest. The vast majority of Chinese cars sold abroad end up in the developing world. "India's advantage lies in its strong engineering skills and a large supplier base, which has learned to meet the strict quality requirements of European markets," says Ammar Master, an analyst with J.D. Power & Associates (MHP).
Hopefully, the talent pool created in precision engineering, design and other such rare skill sets will spur home-grown entrepreneurship in design boutiques and consultancies etc the way IDPL seeded so many pharma labs across the country. Long shot I know, but why not?
That's not to say China won't overtake India in exports someday. Part of India's success this year is due to European cash-for-clunkers programs. China's car market, meanwhile, is about five times as big as India's and has grown 46% this year, spurring carmakers there to focus on the mainland rather than exports. At just 2 million vehicles last year, India's market is too small to warrant all the capacity the country now has, so manufacturers feel they need to export. "If you have a factory in China, you just fill it and sell the cars in China," says Colin Dodge, Nissan's chief for Africa, Middle-East, India, and Europe. "Don't [bother with] exports."