Maruti, Bajaj Says #BoycottChina Won’t Work; Chinese Parts Are Needed For Manufacturing
Even as the border tension between India and China escalates, two of the biggest vehicle manufacturers in India:Maruti Suzuki and Bajaj has told that #boycottChina movement won’t work in India.
It seems that the manufacturers and vendors of automobile industry need Chinese parts and equipments, and without them, things won’t move.
Maruti Suzuki: We Need Chinese Components For Manufacturing
While speaking with CNBC-TV18, Maruti Suzuki representatives informed that automobile industry needs Chinese imports, and abruptly stopping and boycotting Chinese products will backfire.
The company said, “The Prime Minister has made has made doing business in India ‘Infinitely Better’, but FDI is still not coming. India hasn’t been able to attract major manufacturing FDI over the last 70 years and policies in India have not been designed to promote competitiveness”
This clearly shows that stopping all Chinese imports and products is not practical, atleast for the automobile industry.
Bajaj: We Desperately Need Chinese Imports
Meanwhile Bajaj, India’s biggest two-wheeler manufacturer also said that they desperately need Chinese products and imports to sustain their manufacturing process.
Bajaj is heavily dependent on alloy wheels, which are required for manufacturing motorcycles, and a sudden ban on all imports from China will hit them hard.
There is another angle of competitive pricing, and Bajaj and other auto manufacturers are compelled to import the same from China due the difference in price.
Is Banning All Chinese Products Practical?
As per the information shared by The Standing Committee on Commerce on ‘Impact of Chinese Goods on Indian Industry’, imports from China increased by $50 Billion in 2019, whereas exports increased by just $2 billion.
40% of overall trade deficit of India is Chinese trade, and this speaks volume about the importance and relevance of Chinese trade.
And if we only speak about electric mobility, then Chinese have an indispensable advantage. Battery constitutes 50% of the expenses for an electric vehicle, and two of the World’s biggest battery manufacturers are Chinese, and the rest three have massive Chinese manufacturing units.
We will keep you updated, as more details come in.