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Old 28th December 2012, 19:12   #1
M35
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Default Chinese Cars : Would they sell in India?

Chinese car makers Vs Indian Car Industry and global industry as a whole

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Ten years ago, no discerning Chinese consumer would have bought China-designed cars. Not only were such vehicles accused of being illegal counterfeits of foreign models, but their quality and safety were also mistrusted.

Now, despite their homely looks, some indigenous models are striking a balance between no-frills affordability and acceptable quality. In China, it is the age of the good-enough car – and that has potentially significant implications for the world auto industry.
source:http://www.theglobeandmail.com/repor...1827/?page=all

Don’t laugh -- there was a time when nobody thought Japanese could do it, either.

Chinese love cars and driving. I always wondered the number of cars on road majority of them being Audis,BMWs, Buicks, Cadillacs, Chrysler, Volkswagens, Volvos ,Mercedes-Benz, Mazda, Kia,Hyundai, Toyotas,Honda, Mitsubishi ,Nissan,Ford and the list gets bigger everytime i come out of my apartment.

Out of curiosity, after seeing some decent looking local cars, I did some research online for those chinese brands.

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source:http://chinaautoweb.com/auto-companies/

Great Wall Motors [GWM]
http://www.gwm.com.cn/en/
According to media reports Great Wall Motors, china will mark their entry and could start manufacturing their vehicles in India in 2016.

Haval H6 is one among several SUVs in their hut and is the at the top in the sales chart in NOV-2012 ahead of the likes of VW Tiguan and Hyundai ix35.

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The specifications and features of Haval H6 SUV

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Also attaching the NOV-12 sales chart to have brief idea of China automobile industry.
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source:

http://chinaautoweb.com/

What do you think guys, would these models pose any threat to indian car industry if they establish a manufacturing unit and a good ASC network across india ?

read more:http://www.oncars.in/Car-News-Detail...ter-India/3328
http://articles.economictimes.indiat...icle-new-delhi
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Old 29th December 2012, 15:09   #2
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Default re: Chinese Cars : Would they sell in India?

I see no reason why the Chinese, and for that the Indians, cannot do what the Japanese once did and the Koreans are full swing into. Start out cheap and imitators, build cars cheap with lots of gizmos and eventually move up to being top of the food chain. Toyota and Honda were by far the most successful at this but other Japanese and now some Korean manufacturers are there too. And of course China and India have massive markets to work with so staying solvent is definitely doable with one hit model. Tata are good here with the indica/indigo and nothing else.

If the Indians do not ensure that quality picks up (aria being a prime example) then competing globally will be a major problem given the number of competitors out there. I would like to see India and china dominate the market in the future as we will see good quality, low priced products, bit when that will happen is debatable.
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Old 29th December 2012, 15:39   #3
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Default Re: Chinese Cars : Would they sell in India?

Our local manufacturers don't have a market as big as Chinese, neither in terms of sheers number or acceptance. I am pretty sure in times to come, Chinese manufacturers will leapfrog the Indian manufacturers when it comes to global automotive space or even local.
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Old 29th December 2012, 16:17   #4
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Default Re: Chinese Cars : Would they sell in India?

Chinese products are everywhere. Even in India, I can not think of a single industry where influx of the Sino Brigade is not felt.
Of course from an economics stand point it has been both good and bad. Many Indian manufacturers have had to shut shop because they could not cope with the competition. At the same time many Indian's have benefited as well by becoming traders but the reality in both cases that this money is going to China. Our own factory was shut down five years ago, when Chinese imports were at least 20 to 30 % cheaper than our home products and quality is the last thing on most minds, all the trade wants is profit and this 20 to 30 % difference starts to matter over any promises of quality.
So if you cant beat em join em. Yeah I say, let Chinese auto cos come to India, our country is anyways going to the dogs, does it matter if we drive Chinese cars while going there.

Will they sell? - If we can find buyers for Alto's and Nano's in India, I am pretty the Chinese will be well accepted.
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Old 29th December 2012, 16:31   #5
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Default Re: Chinese Cars : Would they sell in India?

I would rather differ from what others have to say about this.
I feel Chinese automobile companies won't pose a threat like the Koreans and Japs because down there in every Indian there is the feeling of "China-ka-maal" which is always considered inferior in quality and performance.
As we all know, the relations between India and China have not been something great to talk about in the past few years.
This will also play a major role in their position in the automobile market.
Also Japs and Koreans have always been at the apex in technology ranging from computer chips to cell phones to home appliances to automobiles!
If a German or and Indian or a Japanese car is 1 lac costlier than its Chinese rival I would definitely pay the 1 lac more and I feel many Indians would do the same!
India is a different and a huge market in itself. Buyers' sentiments cannot be judged by comparing it with other countries' markets.

-Bhargav
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Old 29th December 2012, 17:07   #6
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Default Re: Chinese Cars : Would they sell in India?

Anything Chinese means mostly (if not all) have shabby quality. I have mostly seen toys and the ones which are branded by global giants (but manufactured in China) are of good quality, anything and everything else is mostly bad.

With toys etc its OK, will i buy a Chinese medicine at 30% less price, possibly not. The same thing goes with Cars, if its something that can be potentially life threatening i would rather look elsewhere, and i know i am not alone.
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Old 29th December 2012, 17:54   #7
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Default Re: Chinese Cars : Would they sell in India?

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Originally Posted by mayankjha1806 View Post
With toys etc its OK, will i buy a Chinese medicine at 30% less price, possibly not.
That is if you have a choice. India is world's largest importer of Bulk Drugs from China.

Manufacturers purchase bulk drugs from China and do Tablet/Syrup forumaltions in India.

http://english.peopledaily.com.cn/90883/8067497.html
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Old 29th December 2012, 17:57   #8
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Default Re: Chinese Cars : Would they sell in India?

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Originally Posted by mayankjha1806 View Post
Anything Chinese means mostly (if not all) have shabby quality. I have mostly seen toys and the ones which are branded by global giants (but manufactured in China) are of good quality, anything and everything else is mostly bad.

With toys etc its OK, will i buy a Chinese medicine at 30% less price, possibly not. The same thing goes with Cars, if its something that can be potentially life threatening i would rather look elsewhere, and i know i am not alone.
The question is if those chinese cars are better built, better equipped and safer than what we have here, our home grown products, in the given price bracket ,they would certainly find takers.

BTW How many of our home grown cars are safe enough? How many of them will qualify for least 4 star NCAP rating?
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Old 29th December 2012, 18:40   #9
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Default Re: Chinese Cars : Would they sell in India?

Long back there was heavy influx of chinese bikes when many were predicting doom for indian bike makers. Premiere Rio and Force One are good indicators of penchant that Indians have towards chinese vehicles.
Chinese auto compaies would show there presence for sure but I doubt if they can build any cult.
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Old 29th December 2012, 18:53   #10
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Our automobile industry is still pretty closed sector with steep taxation policy for imports.

So for Chinese cars to be successful they either need to manufacture them here or import a really cheap stuff which when comes here looks like a Rio and will not sell anyway

So both possibility looks bleak.
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Old 29th December 2012, 19:08   #11
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Default Re: Chinese Cars : Would they sell in India?

Quality of product "made in China" is country specific, example products sold in Europe & USA are of a different quality level that what we get here in India.

India needs to have tougher controls so that we don't become dumping ground for cheap and sub standard products especially cars and other automobiles.
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Old 29th December 2012, 19:52   #12
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Default Re: Chinese Cars : Would they sell in India?

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Originally Posted by tj123 View Post
Quality of product "made in China" is country specific, example products sold in Europe & USA are of a different quality level that what we get here in India.

India needs to have tougher controls so that we don't become dumping ground for cheap and sub standard products especially cars and other automobiles.
+10
There are many cheap [price and quality] things sold in our market in the name of “Made in China”. Are they really made in China? I doubt. Unfortunately there are more takers for those cheaper things than the products made in India. If all those low quality products are of great demand in India ,we have to blame ourselves going for those “use and throw” articles.
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Old 30th December 2012, 11:15   #13
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Quote:
Originally Posted by M35 View Post

The question is if those chinese cars are better built, better equipped and safer than what we have here, our home grown products, in the given price bracket ,they would certainly find takers.

BTW How many of our home grown cars are safe enough? How many of them will qualify for least 4 star NCAP rating?
Hi M35, NCAP is yet to take shape in India. Moreover most of the Korean manufacturers have a 4+ rating at Euro NCAP and our homegrown cars fare almost equally in the safety tests conducted by ARAI and ICAT. Moreover, several india made cars are being exported to europe where it has been mandated by the authorities to get an NCAP rating before allowing exports, so the manufacturers are capable of doing it. I would doubt if they are making separate dyes just to ensure a 5% odd share of their total sales that is being exported. So in all probability, the vehicles that we get are at par with the ones being exportes barring a few minor tweaks that foreign nations have mandated.


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Originally Posted by sindabad.sailor View Post
Long back there was heavy influx of chinese bikes when many were predicting doom for indian bike makers. Premiere Rio and Force One are good indicators of penchant that Indians have towards chinese vehicles.
Chinese auto compaies would show there presence for sure but I doubt if they can build any cult.
However, Chinese products have never fared well in the Indian auto market. This is because the better quality products if imported would cost more than their segment counterparts because of the import duties. Cheaper products do not even pass our basic emission and safety tests. I have seen motorcycles of Global Motorcycles lying around unclaimed at my office, once they failed the emission tests. The company officials didnt even bogher to claim their vehicles once it happened.
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Old 30th December 2012, 11:16   #14
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Default Re: Chinese Cars : Would they sell in India?

Before one asks the question, "will Chinese cars sell in India ?", I think one should ask the question "should Chinese cars sell in India" ?

This question should be asked in the context of reciprocity ... and the first question one should answer is this ... "are Indian cars allowed to sell in China ?".

For those in the know, the Chinese government is overtly and covertly ensuring that only European and American brands are allowed into their market (with stringent requirements of indigenisation / localisation / technology transfer), with limited tolerance for Japanese and Korean brands.

While India is not China, and as a society we tend to embrace all kinds of imports rather freely, I think one should pause and ask oneself what the free import of Chinese automobiles could do to the domestic car industry.

By domestic car industry, I do not mean indigenous brands only, but also foreign brands who have set up manufacturing plants in India.

I think one must acknowledge that the domestic car industry is a source of direct and indirect employment to millions of Indian citizens, and that it is also a source of revenue for several state governments.

In every market outside China, where Chinese vehicles have been imported into, the Chinese are the cheapest by far. To the point where one wonders how they could be priced so low, without some major skulduggery.

So, my take is, do not allow Chinese car imports into India, UNTIL China actively allows Indian-made car imports into China.

I'd be happy to hear other points of view.

Last edited by FourWheelDrift : 30th December 2012 at 11:18.
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Old 30th December 2012, 13:20   #15
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Default Re: Chinese Cars : Would they sell in India?

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Originally Posted by FourWheelDrift View Post
first question one should answer is this ... "are Indian cars allowed to sell in China ?".
Even if Indian cars are sold in China, who will buy these when better quality products are available at similar cost?

Jaguar / Land Rover (owned by TATA), is doing good business in China and till recently was not manufacturing those in China.

IMHO, we should allow Chinese brands as long as they have to follow the same constraints as everyone else, I.e. either manufacture in India or pay applicable duties. And lets market decide the fate (E.g. Premier Rio) or brands and models.
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