Growth of India’s automobile market attracts Chinese firms

Chennai;
The growth of India’s automobile market has lured Chinese firms who are vying to have a share in the market that is attracting global players to set up plants in the city and other parts of the country.

Dalian Haosenread Equipment Manufacture Co, that has set up a supply unit in Pune last year, is silently studying the market in India and the company’s officials are cautious on revealing their plans.

Speaking to City Express during the Seventh Edition of Automotive Engineering Show here on Thursday, business department project manager of the company, Song Yanjun and vice-business manager, Bin Zhao, highlighted that the high cost of Chinese labour was forcing many firms to relocate to countries like Thailand, Vietnam and Bangladesh.

“The growth of Indian automobile sector has attracted us and we want to contribute to the growing  market. Last year, India sold about 2.8 million automobile vehicles. We expect the sales to increase over the years, ” says Yanjun, whose company is participating in the expo for the first time since they started their Indian operations.

“Dalian Haosenread supplies assembly equipment such as engine assembly line, transmission assembly line and other products to international companies like BMW, Ford, Volkswagen Suzuki etc. India is next to China in terms of economic and business growth rate.  By the year 2020, we believe India might sell up to 9 million units of automobile and there is a belief that India might become one of the largest automobile exporters in the world. So we are currently targeting Pune and soon, as need arises, expand to other cities”, added Yanjun.

Asked about whether the company will bring factory workers from China,  and Yanjun promptly replied  that the company believed in working with the local people to do the local business.

He said, “We want to hire people, even higher officials of Indian division only from India, as they can interact with the local people and other local workers to get things done. Besides, the salary of workers in China is also soaring high.”

Business manager Bin Zhao added, “Not only business but we also intend to have cultural exchange between both nations owing to their similarities. We hope our venture in India will enable this cultural exchange.”   

Interestingly, Dalian is not the only company that is trying to have a share in the growth of Indian automobile market. “Firms like Sany and Futtaim already have presence in India”, said Zhao.

Earlier, the automotive engineering show was inaugurated by TVS Vice-President Operations, V K Shanmugam.

 “About 125 exhibitors are participating in the event which also includes seminar sessions.” said Sameer Khedkar, director of the exhibition.