India has exported more cars than China this year thanks to booming demand for small cars, plus friendlier investment rules.
Bloomberg: Total exports, including vans, sport-utility vehicles and trucks, rose 18 per cent to 229,809. Cars are exported to over 100 countries, and don’t include the U.S. or Japan… In contrast, China’s exports slumped 60 per cent to 164,800 between January and July, according to government data.
automakers will favour India to set up an export base as China requires companies to form local joint ventures and India doesn’t, said Ashvin Chotai, London- based managing director of Intelligence Automotive Asia Ltd… “It makes companies more comfortable to have an export strategy when they have full control,” he said. “They don’t have to give up some parts of the profits to their partner.”
From our experience speaking with Japanese auto manufacturers, another concern in China involves the risk of intellectual property leakage. Nobody likes it when their JV partner suddenly emerges as a competitor five years later, with similar technology! This might be less of an issue in India, just as it is less an issue in South East Asia.
Regardless, the growth in Indian auto exports is impressive given that other Asian auto export hubs have seen massive declines lately. Such strength in a downturn could signal a true shift in the works.
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