India and China being the booming Indian car markets despite recession are attracting many big car companies from the world. Both the countries are fairly active in foreign markets with their cost effective and efficient car models.
The recently held Shanghai Auto Show in China witnessed the presence of major car brands like General Motors and Chrysler but surprisingly Indian car manufacturers were missing from the show.
The absence of big Indian players like Tata Motors and Mahindra & Mahindra was felt by many. This was especially noticeable as Tata Motors recently launched world’s cheapest car ‘Nano’ was displayed in almost all the international Auto shows. It also against their policies of going beyond Indian shores for new market. Mahindra has entered African and South American markets. Tata Motors is available in more than 10 international markets. When the Indian car manufacturers are interested in western markets then the question remains why they stay away from China? Is it because Indian car manufacturers are apprehensive about China? Or they are obstructed by stringent entry rules of the motor show?
Indian car manufacturers deny the accusation of being afraid of the competition from the Chinese market. They blame the strict entry barrier for being absent from the Shanghai Auto Show. They further express that regulations for investment and branding are very difficult to follow in China. There is very little scope for car manufacturers who enter in a small way to expand their operations in the country. But Indian car manufacturers are still positive about attending the show sometime in near future.
It is a shame that India chose to stay away from the China Auto Show. It would have been the best platform for Tata Motors to showcase the wonder car Nano. Especially, as most biggies of the world automotive industry were there. It need some more efforts from Indian players to go to Shanghai.
Auto shows play a major part in the development of a car companies. They provide excellent opportunity to the car manufacturers to display their new car models. it is necessary for the car manufactures to be a part of such shows.
Indian car manufacturers did the right thing by staying away from China. If Indian cars are allowed in china, India would have to do the same for the companies. That means allowing cars that cheaper than ones sold here wouldnsid be available to customers, resulting a death blow to Indian entrepreneurship. That is not good news for Indian players, Is It?
India had its own valid reasons for not attending the show. But it would have been good if India had participated.
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