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Actually we're still protectionist about cars and it has worked to our phenomenal advantage. As the wages started rising, foreign car companies have sensed the
by sfifs 10y ago
Actually we're still protectionist about cars and it has worked to our phenomenal advantage. As the wages started rising, foreign car companies have sensed the market potential and invested in localization of supply chain..... because we still have 100% duty on imports, a high duty on kit imports and ban import of pre owned cars. Now they export from India to smaller markets which do not have as much bargaining power due to smaller markets.
Moral of the story - if you have leverage in terms of market potential, by all means use it to get jobs into your country and develop industrial capabilities.
- yummyfajitas 10y agoHas it worked to our advantage? Anyone with enough money to burn drives an import. As far as I know, the only Indian brand that people overseas drive voluntarily is Royal Enfield. This might be good for a few people lucky enough to get automotive jobs, but it really sucks for people stuck driving inferior domestic vehicles.
- sfifs 10y agoThe total automobile sector is actually quite massive - it was 8% of the GDP back in 2013 and 7-8% of employment.[1] Almost all "imports" below 2 million rupees are actually manufactured 70-80% in India from scratch (for instance Toyota and Honda mainly import engine blocks and engine electronics from Thailand) and the more expensive Mercs, Audis and BMWs are imported as kits and assembled in India. It's only the Porches and Ferraris that are fully imported. Most of the market anyway is below 1 million Rupees and anyway is mostly owned by Suzuki, Hyundai and Toyota brands who manufacture almost 100% locally. [1] https://www.google.co.in/amp/wap.business-standard.com/article-amp/news-cd/the-indian-automobile-industry-on-a-whole-and-contribution-to-gdp-115022701276_1.html?client=ms-android-samsung https://www.google.co.in/amp/wap.business-standard.com/artic...