The emergence of India and China has been synomanus with two different terms manufacturing and service. If you compare manufacturing infrastructure in China and India then China dwarfs India . But now, India has proven that its manufacturing Industry, specifically auto-manufacturing can surpass China with its quality and low cost. While China 's auto exports plunged 60% between January and July to 1.65 lakh units, India exported a total of 2.30 lakh cars, vans, SUVs and trucks in the period, representing a growth of 18%.
China has become a great auto exporter because of huge subsidies, an undervalued exchange rate and dirt-cheap credit. The amazing success of Indian story could be attributed to two big factors one is very competitive and open Indian auto industry and innovation success of Indian auto industry.
Indian auto industry has expanded heavily from mid 1990s when only cars available were of Maruti Suzuki (a Suzuki group company). Now with heavy duties on importing cars and exploding domestic car market saw world leaders like GM, Toyota , Honda, Hyundai entering Indian auto space. Also local players like TATA and Mahindra benefited from increased spending power from Indians working in successful IT industry. The Auto companies competed by constantly producing new models with improved features like fuel efficiency and increasing their capacity in India for domestic market. The cheap and highly skilled Indian manpower helped these companies t o not only increased their footprints in India but the low cost of production with high quality is making India a favorable destination for all major auto OEMs to make India their export hub.
India is also increasingly becoming synonymous with innovation. It is already becoming hub for small car and is home of world cheapest car i.e. $2500 Nano from TATA Motors. Also big R&D centre is being planned by Suzuki to enhance development of new generation models of his existing portfolio of Swift and Alto which is buoyed by latest Suzuki success of indigenously developed A star which is a big hit in export market for Maruti Suzuki. Others players like GM and Ford are also ramping up there R&D centers in India to develop small car concepts faster and effectively.
With all this development India has shown the world of its success in competitive market and answered China’s manufacturing might with new innovative concepts and designs.
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