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The following article was published in our article directory on November 15, 2010.
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Article Category: Business
Author Name: xia zihui
First trip to India in 2006, looked out from the car in Delhi, dilapidated buses and motorcycles in the absence of lane dirt road cut in from time to time some people cross the street scene, as if seen in China before 1990.
This is indeed 20 years ago in China, India, the country was not a closed highway. India revisited four years later, in addition to the traffic is still chaotic, antiquated infrastructure, car consumption has been very different: in the past has been part of the transverse micro-car is the Toyota Corolla, Honda and other higher-level front range car replacement, Accord, Camry Switzerland and BMW from time to time to see, and many of prefectural-level cities in China is almost the same. Including Tata Motors, India's automotive industry, including all that India is now the equivalent of ten years ago, the eve of the outbreak of China's auto consumption.
Precisely because the Indian market rate of return advantage, many multinational companies have put India as the next China. Government of India is aware of this, speed up the transformation of the urban road network: by 2010 India's central city before crossing the main road all the overpass was built to replace the traffic lights. Experience shows that in China today can become the world's third largest automobile consumer market, to some extent the late 1990s, around the country with a large-scale network construction and renovation are inseparable.
India next few years, and is the global industrial chain can find its location within the Chinese automotive direct competition, it's harder to the following conclusions. However, there is a problem worthy of our vigilance - the basis of Indian national enterprises, and brand power consumption is much higher than China.
India's Tata few do not know, Bier La, which is nearly a hundred years these brands continue to penetrate the Indian economy and livelihood of the results, Tata group controlled by the Tata Foundation, part of the Tata companies undertaking public investment in their districts such as medical, health, education and so on. The hundreds of years of private trusts, is the core of India's economic advantage. And their diversified business model has been proven by the market, and multinational corporations as early squeezed into the world top 500.
Diversification of Indian companies are mainly in the 1970s, this is the trough of the private sector. Nehru government vigorously as nationalization of Soviet Union, Tata and other private companies experienced an unprecedented development bottleneck, the main industry of steel produced by the administrative limit restrictions. These companies are forced to choose diversified, looking for capital can not take into account the state of food and other industries, to continue the pace of expansion.
India's 1991 economic reforms, good for the development of the automobile industry, people have more income and demand, the car market so he quickly developed. This is much like the situation with China.
The difference is that China and the Government of India only to specific areas of the access control industry, the domestic private enterprises and foreign enterprises to enter the Indian market basically no restrictions.
Therefore, the Government did not purchase local auto companies and foreign auto companies be treated differently, the local government procurement of buses to decide, the government may be inclined to purchase their own specific areas of the product. Bangalore is India's most developed cities, the local government before the decision to purchase Volvo buses.
In the absence of mandatory localization rate policies, joint ventures or wholly-owned brands in India's local production is lower than China. In addition to local TATA can reach 90% -95% level, the localization rate of Toyota and Honda only 50% -60%, Ford 60% -65%, slightly higher than about 77% of modern -90%. This is to some extent also let out enough low-end market, given that India's Tata Motors to survive a national brand.
National enterprises in China in 1949 after a fault, nearly 30 years was gradually restored. Relative to the business of Indian companies to lay the territory of a century, and the management and brand foundation, the Chinese enterprises is still at a disadvantage, the only advantage of the industrial and manufacturing standards.
China's reform and opening up began in the late 1970s, through the introduction of foreign investment or joint venture or sole proprietorship, a lot of profit at the same time, let the Chinese manufacturing level in three decades, reaching the same level of developed countries in Europe and America. Research Center of the Ministry of Commerce Institute for Transnational Corporations, Professor Wang annual inspection of enterprises in Europe and America, he compared that "as a global manufacturing center, in fact, currently the world's best equipment in China." A typical example is that Shanghai Volkswagen is the most popular global system equipment, advanced manufacturing technology the best companies.
Like India, China Lion - the analogy does image. Indian companies step by step, Chinese companies a flexible and aggressive.
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