Coronavirus no setback for Chinese automakers in India

The outbreak of coronavirus may have cast a shadow over businesses in China, but companies in the world’s biggest auto market are expected to leverage the biennial show this week to aggressively explore opportunities in India, especially in the development of electric vehicles.

While some Chinese delegates and senior executives have pulled out following a travel clampdown, as first reported by Mint on January 31, several others will be present from the group of Chinese companies who will take part in the Delhi auto show for the first time.

“The organisers have also asked us to take precautionary measures. Hence, our executives who were supposed to come from China will not be able to make it. We also don’t want to harm the show anyway,” said an executive at one of the largest automakers in China seeking anonymity.

Chinese automakers are expected to hit the ground running at the Delhi show as they search for lucrative markets outside of China.

Some of the biggest vehicle manufacturers from China— SAIC Motor Corp., Great Wall and Faw—will unveil cars packed with technologies including AI and IOT. Given China’s strength in manufacturing, it is likely that competitors would find their prices hard to match, industry officials said.

According to an executive working for one of the Chinese companies in India, most of the companies from China are flush with funds and looking to invest in a market which has the potential to grow since sales growth in China has stagnated. Hence, India is a good opportunity for them.

“Most of these companies are not only manufacturers of vehicles but have also invested in lithium battery manufacturing and other technological innovations. Also, the emergence of electric vehicles has given them the opportunity to take the Indian market by surprise since such vehicles require more electronics than traditional parts. When it comes to innovation, most of the

Indian car makers are quite behind the Chinese,” said the person seeking anonymity.

SEVERAL SENIOR

EXECUTIVES FROM CHINESE COMPANIES WILL TAKE PART IN THE DELHI AUTO SHOW

FOR THE FIRST TIME