Editorial/ Can Indian Cars & Bikes Ply on Chinese Roads?

Can Indian Cars & Bikes Ply on Chinese Roads?

The question remains: Why don’t Indian manufacturers start attacking the Chinese market?

The two-wheeler sales in April 2024 have spiked. Let’s start with Hero MotoCorp. The largest two-wheeler manufacturer in the world reported a substantial 34.7% year-over-year growth compared to April 2023. TVS Motor is up by 25%, Bajaj by 19%, Suzuki by 12%, and Royal Enfield by 9%; along with the rest, the overall industry has grown. But it’s not all hunky dory with EV two-wheeler sales, with a slump of almost 50% in April over the previous month’s sales. Ola Electric, which sold 50,000 units in March, is down to just 33,000 units, while Bajaj sold just over 7,500 units in April, compared to more than 18,000 units in the previous month along with the rest. This is mostly because of the shift in government subsidies increasing the price and decreasing the popularity of electric two-wheelers in the country. This is the problem of subsidies - they’re not sustainable. Once the plug is pulled out, consumers also go into a wait-andwatch mode for subsidies to come back because, in the end, no one wants the wrong end of the bargain.

On the other hand, Chinese startup Leapmotor is launching its electric vehicles in India as part of a global joint-venture partnership with Stellantis. BYD is silently turning up the heat by first going after the commercial market and now, with its Seal trying to take a slice of the mid-luxury EV market. The United States has been raising import tariffs and trying to protect the Teslas of the world and also its dependence on China overall. The Chinese electric vehicle manufacturers within the USA market are getting speed breakers and Europe might also follow the same path. With both these big markets getting into a stressful situation, the Chinese are now eyeing the emerging Indian market and following the adage “Dont put all eggs in one basket”; eggs here means their EVs.

Leapmotor, with its T03 hatchback and C10 crossover, is eyeing to grab market share from Tata and Mahindra’s EV portfolio. I am hoping that as the smartphone industry in the past, with Chinese impressive value offerings killed the homegrown Micromax, Intex and various other smartphone brands, the Indian automotive industry will remain competitive. The question remains: why don’t Indian manufacturers start planning and start production or exports to the burgeoning Chinese market? That’s when the real game will begin. Imposing tariffs to protect us will only make us more uncompetitive, lethargic and surely less ambitious. It’s time to think outrageous and see India

TopGear Magazine October 2024