China independent brand carmakers Indian

　　According to the Shanghai Securities News, No one can deny that, in May 2010 China’s passenger-car market seems a little bit depressing. According to the figures released by CAAM, in May, passenger car production and sales were respectively 1.0315 million and 1.0432 million units, dropped 9.72% and 6.09% from April.

　　However, meanwhile, another auto market is heating up, and that is India. From the end of 2009, more and more Chinese auto enterprises have taken a fancy to the Indian car market. After the Shanghai Auto announced that it will to enter the Indian market jointly with General Motors, Foton, Chery, Geely and Great Wall Motor have brewing the same planning. Recently, a piece of news came from the Foton that they have already set up a truck plant in India whose annual production will reach 100,000 units by 2011. Besides, the models introduced to Indian car market are so varied that all light passenger cars, heavy trucks are includes.

　　Why China carmakers are so crazy about the Indian market? The high-level executives from of several auto companies have considered realistic feasibility and future high-growth space are two major reasons.

　　As to the so-called realistic feasibility, it means the competitive advantages of Chinese products are where the demands lie in India market, which can lead to a win-win situation. As we all know, China has become the world’s low-cost and large-scale vehicle production base. The advantage of Chinese cars is low prices and high quality. Compared with India, Chinese cars obviously are high-quality ones, at least have safety security and be equipped with all windows, doors and air-conditioners. As India is gradually transferring to a car community, safe Chinese cars with low prices are in great need in China.

　　The so-called high-growth space means India is widely recognized as the auto market has the most potential to grow globally. Especially when last year sales in China auto market reached 13.60 million units, it is really hard to keep a double-digit annual growth, which makes the India becomes even more attractive. Just imagine since it is estimated sales of motor vehicles in India in 2010 will reach 3 million units, if any China carmaker can account for a market share of 3%, then how high the sales and profits will be once the sales of Indian market tops 10 million units in the future.

　　It sounds to explore the Indian market is so well-reasoned. However, have the Chinese automobile enterprises really prepared well in no matter products, production, abroad policy study or culture breaking-in? According the previous experiences, China auto enterprises need to make excellent preparation when exploring the overseas markets by large-scale. Just think about in the year of 2006, then that in 2006 China carmakers entered into the Russia enthusiastically, hoping to explore the European market based Russia. But how it ended? As Russia raised the barriers for entry, in 2008 China enterprises came across difficulties entirely. Since Chinese enterprises were all refused permission to enter, those joint venture agreements signed previously have yet to become reality.

　　Of course, the Chinese auto enterprises have had to take care of another matter, that is vehicle technology and design patents. After all, not only the Chinese car companies but also those multinational companies have taken a fancy to Indian market. The models have dispute upon patent need to make full preparation before enter the Indian market, otherwise it might cause a lot of troubles.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100618/n272880271.shtml