Believe it or not, but a 100-odd Chinese auto component manufacturers are exhibiting their wares at the 10th Auto Expo in Delhi. These manufacturers include the largest truck engine manufacturer FAW group, to medium sized players like gear-box maker Weichai Power.
The Chinese companies are here in India to cash in on India’s high growth-trajectory and are ruminating to explore a range of options like Joint Venture with Indian partners, setting up a manufacturing base, directly exporting from China by appointing Indian distributors and even launching after sales services for commercial vehicles.
The Chinese, of course, are looking forward to make most of its low-price of components. According to Wang Yuhe, manager of international service department at Wenichai Power Ltd, India is a growing market for trucks. Moreover, Indian consumers keep scouring for quality products at the right price, and Chinese products could be an answer to India’s ever-growing demand for trucks. High growth is on the cards in the realm of commercial vehicle market in India. With Tata Motors, EIcher-Volvo, Ashok Leyland and Mahindra & Mahindra introducing large trucks at the expo, the commercial vehicle market in India is projected to grow by 20 percent annually.
The Chinese auto component makers have already established a niche in the Indian markets, constituting for over 10 percent of the US $4.5 billion auto components imported in the country. Though India’s auto component imports have increased by 30 percent, the Chinese auto components exports to India have increased by almost 100 percent.
Chinese auto component manufacturers are also making a firm effort to nod off the ‘low quality’ tag attached – a key factor putting off Indian manufacturers.
Furthermore, after sale services are also an issue with Chinese manufactures. So the manufacturers will be looking forward to offer quality and warranty on its products. However, for this to shape up the Chinese manufacturers are looking forward to JVs with Indian partners.
