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India Beats China to be Crowned World’s Small Car Hub

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Way back in 2007, I had written about how global Automakers are targeting India to setup their small-car manufacturing units in India. Since 2007, more than 8 automakers have setup their shop here.

And Now, according the the latest report, India for the first time has surpassed China in Automobile Exports.

car manufacturing

This is a significant achievement – and let me dig deeper on why I say this:

When it comes to Manufacturing anything from plane to paper to pin, there is no other country that can beat China at their game. Over last 40 years they have built literally thousands of such assembly lines, which churn out millions of products to supply to the world market – All this at rates that none can match. Most of you must be aware that 80% of U.S supermarkets carry Chinese goods.

India on the other hand has been providing services or “skilled labour” to carry out services across the globe. They are world beaters when it comes to outsourcing / offshoring services, but India has never been recognized as a manufacturing hub.

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But now, India has proven that India’s manufacturing Industry, specifically auto-manufacturing can surpass China with its quality and low cost.

India exported total of 2.30 lakh cars, vans, SUVs and trucks between January and July 2009, a growth of 18% even as China’s exports tumbled 60% in the same period to 1.65 lakh units.

Significantly, India’s domestic Car market is less than 1/5th the size of Chinese Car Market and still it has managed to achieve this.

In last couple of years, Indian Automakers have been buzzing, especially because of successful launch of $2000 car – Tata Nano. Additionally, Tata Motors takeover of British Iconic brands – Jaguar & Land Rover – has put Indian Auto manufacturers on global map.

Perhaps, another important aspect that world is looking at is, “Made in India” tag, that stands for better quality cars than Chinese.

At the same time India’s car market is growing much faster than any other market in the world (infact, US/UK car makers have seen serious meltdowns). This provides an unique opportunity for Global Automakers to enter a growing car market as well as develop it here at High quality / low cost for global consumption.

  1. […] And as all of us have already discussed in many of the posts before, India is turning out to be the small car manufacturing hub of the country. The sedans as well as compact SUVs could also turn out to be pretty good if […]

  2. Pooja Gupta says

    This is a clear indication that the world markets have started appreciating quality over lower prices again.

  3. Aayush Puri says

    “[…]China’s exports tumbled 60% in the same period to 1.65 lakh units[…]” — This is really unbelievable.

    In any case we need a pat on our back for this!

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