2020 February 7, Fifteenth Delhi International Auto Show opened as scheduled in the Indian capital Delhi. For India Auto Show Maybe a lot of people are unfamiliar, but for many Chinese brands but has other flavor, because since last year, there are many car-related Chinese brand India Auto Show exhibitors at this year’s auto show in India on, there is the Great Wall, MG SAIC, FAW Haima three Chinese automobile companies and more than 300 Chinese auto parts companies participating. In addition, there are well-known national brands are exhibited at the India Auto Show. From the size of India’s auto show and the exhibitors point of view, it is easy to see the Indian car market has been the concern of the global car prices, especially for Chinese car brands, this may be an important base after they break the country.
But the world situation, the current global automotive market, mainly in China, the United States, including Japan, India in 2018 when he was on annual sales of 4.4 million overtake Germany as the world’s fourth largest auto market, with its large population and low automobile penetration rate and, therefore, it was predicted that India will overtake Japan to become the world’s third-largest auto market . But as the saying God Bless ominous clouds, in the last two years, the global automotive market are in a state of malaise, the Indian car market in 2019 was also only sold 2.936 million vehicles, fell by as much as 12.4 percentage, in such environment, India also can become the next car prices were a big cake it?
China’s auto market has been able to become the world’s largest car market, which consists of five main factors, one large population of the enormous spending power; the second is China as the world’s largest producer, has adequate human and material resources to support the automotive market advance; Third, the rapid growth of Chinese economy is based on period for the market to build solid consumer base; fourth point is because China is in the stage of development of automobile power to a vehicle power can be developed with the perfect place is still a lot, which also create adequate soil development of car prices; the fifth point is based on transfer of Chinese spending power, the younger generation of consumer PC market to become mainstream,Bring a more active force to promote the consumption of automotive products convert at the same time.
In contrast the Indian market, which has the same two markets with Chinese characteristics, the first is the huge population base brings huge consumption potential. According to statistics ranking the world’s population, by 2019 India’s total population of 1.354 billion, behind only China (1.395 billion), ranking second in the world, but also in the population growth rate, even higher than China, India, reaching 1.11 percentage (Chinese population an increase of 0.39 percentage), such a large population base means huge potential consumer market. Some people may ask at this time: the much larger population base in Africa, why not be the next big car market?
in this area would relate to national conditions and economic problems, although Africa has a huge population base, but the relative frequent wars and low per capita income, not only car prices prohibitive, but also do not have enough spending power to attract car prices stationed. According to 2019 data show that India’s per capita GDP of US $ 2015.59. Although China had a million dollars per capita GDP is still a huge gap, but in 2018, India’s gross domestic product GDP has reached $ 2.73 trillion, you know, in 2002, India’s GDP is only 5149 billion, in these 18 years, India’s economic development is still quite impressive, and this is the basis of factors that promote the development of the Indian automotive industry.
The second
India and China market is also similar to the spending power of young, and this accounts for younger compared to be much higher than China, according to 2016 market research statistics, the number of people under the age of 20 up to 500 million of India (Chinese only 300 million), the average age of the Indian population was only 27 years old, China was 37 years old. Even now the country liberalized the two-child policy, but in terms of per capita ages or population growth, India seemed more advantages, lower mean age of the future have a greater per capita consumption potential and economic driving force, although IndiaStill in the upswing of the economy, but the future of the market has not low expected value.
in China’s auto market, space is the mainstream market demand and, therefore, let the car industry are becoming increasingly large, SUV market therefore continues to hot. However, the Indian market is showing the opposite situation, the Indian car market car would be more popular, especially among the most Take Suzuki, Suzuki we all know that a few years ago launched the domestic market, among them its brand identity factors, focus Suzuki to build car difficult to meet domestic consumer demand in large consumer-oriented.
but in Suzuki after domestic delisting did not give up the pace of development, so he moved to the Indian market and become the hot-selling brand in the Indian market. Maruti Suzuki series models has been the longest India’s largest light vehicle market leader in 2017, its market share reached about 43 percent. In 2012 its market share was once as low as 34.2 percent (but it is still very high), but a few years has continued to rise, it has declined only because it is not a good performance in diesel car market. In 2020, India will launch five new car models MarutiSuzuki.
The reason why the Indian car market by more popular, especially in India which is also inseparable from the traffic environment. According to statistics, India, thousands of car ownership is only 22, but China has reached 173, but only ranked 17th in the world, ranking first in the United States, thousands of car ownership even reached 837, car penetration rate reached 80% or more. Thus, India’s automobile penetration rate is still low, but with relatively dense population has brought no small problem for the car trip, filled with pedestrians, tricycles, motorcycles, and even animal cattle and sheep, are obstruction of the car, this time a car is obviously higher flexibility of use, but also closer to India’s current travel environment. But this does not mean that large-size models in India would not have emerged,With the upgrading of automobile penetration, the Indian consumer demand will move to more advanced products.
If the Indian market and the Chinese market to make a comparison, small series that the Indian market is now more like a 20th century Chinese market, the gradual economic take-off, the car began to spread. At a time when the major car firms also important to seize the moment in the market, as was all kinds of Ashkenazi, as Japanese car brand in the market beginning to enter the market, and looting of development opportunities. At a time when Chinese brands as the year of foreign car brands, we want the first step entering the market, access to development opportunities. And has always been a price advantage of Chinese brands, believe also favor better access to markets in India, the Indian market is therefore likely to become an important base for Chinese brand to enter the global market.
None doubt, it has a huge population base and booming economic growth of the Indian market in the future will become the new cake car prices. But in terms of the current market situation, the Indian market is still in its infancy, which also has more variables. And China toward international brand can get a better position on a global scale, the Indian market will be the key.
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