Chinese carmakers are accelerating their entry into India to counter falling demand at home with a new market where mass car ownership is in its infancy, reported the Financial Times.
Manufacturers such as Great Wall Motor and FAW Haima this month launched their first vehicles for the Indian market. SAIC Motor has been selling MG cars there since 2019. BYD, which makes electric buses in the country, has announced plans to launch electric vans too.
“They have been planning their India entry strategy” for years, said Puneet Gupta, an analyst at IHS Markit. “Finally we’re now seeing a lot of action.”
The push comes as China’s car market shrinks — vehicle sales fell 8% in 2019. While India fared worse with a 13% drop in sales, analysts expect a recovery and that its growth rate will overtake China.