China and India have one major similarity, they are the two most populated countries in the world consecutively. But it is noteworthy that over the recent history, China has made its population its biggest strength, while India is still struggling to educate and manage its rapidly increasing population and bring them out of poverty. We recently covered the article on China being the number one in the listing of the largest growing passenger vehicles market in the world and India holding the 2nd position. China's wealth has doubled, inequality is shrinking, the economy is balancing again, self-reliance is increasing.
Now, all the global car makers have gathered at the much awaited Shanghai Autoshow to be held from tomorrow to 29th April. The competition in the world's largest auto sector has gone up steeply and the pricing has become more competitive, thus making all the car majors all set to present the best out of their manufacturing at Shanghai. The sales have almost gone 5 times up in the last decade, owing especially to the year 2016 when the sales growth went to 14.9% (24.38millionunits). IHS market said that "The threat now for international automakers is that if local players begin cutting prices, then there will be a rampant price war across the market as automakers compete to attract new car buyers". The increase might be attributed to the direct 10% cut of sales tax on small car purchases. Volkswagen at present is the leading manufacturer in China, followed by GM and Ford. It is believed that all the potential for an expansion in the market lies in the hands of Middle-class consumers.
Also, China is dumping all its unused cheap quality tyres in India, which is affecting the quality of cars manufactured in India. It is also a problem as our PrimeMinister's motive is to Make In India but majors like managing director of Apollo tyres Neeraj Kanwar has to go to Hungary to carry forward the production and export. The company has invested 475 million euros in the setting up of the company in Hungary.
