Chinese auto component manufacturers are quietly making inroads into India.
Over 100 odd companies, ranging from the largest truck engine manufacturer FAW Group to medium sized players like gear box maker Weichai Power are at the 10th Auto Expo in Delhi showcasing their products to the local commercial vehicle manufacturers.
The largest contingent of Chinese companies, perhaps for the first time in terms of numbers at the expo are looking at options like joint ventures with Indian partners, setting up manufacturing base and after-sales service operations, and directly exporting from China by appointing Indian distributors. They are also cashing in on their low price model.
Mr Wang Yuhe manager of international service department at Weichai Power said that "India is growing and demand for trucks is more. Indian consumers need good quality products at the right price which our products can meet. We are 40 to 50% cheaper than competitors."
The Chinese auto component makers are already a force to reckon with in India, constituting over 10% of the USD 4.5 billion components imported in the country. While auto component imports have grown by 30%. Chinese components to India have grown much faster at 100%.
The Chinese are also making a determined bid to shrug off the "low quality" tag attached to their products. "Our quality is internationally tested and accepted by all large commercial vehicle manufacturers," said Amixi Zhong, export manager of Zhejiang Zhong TIE Autoparts, which manufactures airbrake systems of heavy commercial vehicles.
(Source:BS)
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