At a time when the country's auto sector is going through a recession and auto companies are trying to increase their sales under discounts, the cool breeze has come from China. Many Chinese companies in the country are eyeing towards India with great expectations. Chinese companies see a lot of potential in the Indian market.
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Challenge for Indian companies - There is great news for the country's auto sector looking at investment. But there is also a tough challenge for Indian companies because about half a dozen Chinese automakers are ready to revive the country's economy. It is believed that in the next three to five years, these Chinese companies can invest about five billion dollars in the country's auto sector.
These companies are preparing - companies like MG Motors, BYD, Great Wall Motors, Changan and Beiqi Foton are being planned to increase investment in India. Even their vendor partners can participate in it. Apart from this, big companies like Geely and Chery Scout can also be seen as a big opportunity for the Indian market. According to ET's report, SIAC, which owns MG Motors, will soon launch an electric SUV in India and is preparing to invest a second phase soon.
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Apart from this, BYD will make buses from electric vans in India, for which large investments can be made. MG Motors has already invested five thousand crore rupees in the country. Apart from this, Great Wall Motors is bringing its SUV and has also opened its office in Gurugram, besides the talks of buying General Motors' factory in Talegaon are almost in the final stages.
Also, trucks will be made with electric buses - with this Tata Motors is preparing to reduce its stake in luxury car company Jaguar-Land Rover (JLR) and has started talks with Chinese company Geely. The National Heavy Duty Truck Group company Man Trucks, a heavy truck manufacturer, has tied up with Mumbai-based Aaker Company to build the truck. The company is to build a truck called Sinotruk in China. For Beiqi Foton electric buses, an agreement has been signed with PML of North India. Photon may also acquire land at Chakan near Pune.
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Chinese companies occupy the smartphone market - Weichai, another Chinese company that manufactures engines for gensets, is now planning to make horsepower engines for automobile companies. Market experts say that Chinese auto companies have the ability to challenge market players. They believe that this will be something similar to what happened in the smartphone market.
Chinese companies were given a tremendous challenge to many Indian companies, including Samsung. Recently, Chinese companies have a 60 percent share on the Indian smartphone market. The total revenue of the Indian passenger car market is $ 38 billion. This can be increased at a speed of 8.7 percent from 2008 to 2018, while the annual returns ranging from 11 to 33 percent.
