The Hindu Business Line : More Chinese auto cos keen to take part in Auto Expo

New Delhi, Dec. 19 It is not just the western countries but even the Indian market that is on the radar of Chinese companies. Next month as the Auto Expo kicks off, about 400 Chinese auto parts and automotive companies will display their competitive low-cost products targeted at the domestic industry. This is more than double from the number of companies that participated at the last Auto Expo held two years ago.

“In the last Auto Expo, there were about 40-50 Chinese companies that participated. But this year we are expecting their number to touch 400,” said Mr Dilip Chenoy, Director General, Society of Indian Automobile Manufacturers.

Parts market

He said that apart from component makers who will be looking at making inroads in the Indian automotive market, the upcoming Auto Expo will also have Chinese motorcycle makers, electric bike companies as well as bus maker like Kinglon.

Chinese component makers are already aggressive in the Indian market with imports from China growing from Rs 766 crore in FY 2005-06 to Rs 1,295 crore during FY 2006-07.

Huge potential

“The Indian market is now being recognised by China as a huge potential growth area. With their pricing and design, they would initially target the after sales market of auto parts and then the automobile companies that are present in the country,” said Mr Vishnu Mathur, Director General, Auto Component Manufacturers Association.

According to CII, which is also a partner for the event, about 100 German companies, 30-35 Malaysian companies, 70-80 from Taiwan, 10-12 from the US and the UK mainly from the component industry would leverage the Auto Expo platform for the Indian market.

“Even during the last Auto Expo, some Chinese companies had bagged orders, others had received inquiries and in certain cases, companies were exploring joint venture’s and technical collaboration,” said Mr Gurpal Singh from the Confederation of Indian Industries.