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Why, after the “Chinese”, “Indians” will rush to the Russian car market

  • January 9, 2023
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Today, the Russian car market faces one simple task – to somehow survive. The AvtoVzglyad portal has named those who can try to take advantage of this situation

Today, the Russian car market faces one simple task – to somehow survive. The AvtoVzglyad portal has named those who can try to take advantage of this situation in the coming years.

The very first business day of 2023 brought symbolic news: India entered the top three largest car markets in the world for the first time – after China and the United States. Expelled from their homes Japan. The Nikkei bureau calculated that more than 24 million cars were sold in China from January to November 2022, 13.7 million in the United States at the end of the year and 4.2 million cars were sold in Japan itself last year. At the same time, in India for 11 months of 2022 – more than 4.13 million cars. Consequently, the Indians are third in the world in terms of the volume of the car market.

How is this “celebration of car life” connected with Russia? We explain. 4-5 million cars sold per year is the level of the Chinese car market in 2005-2006. With about 1.3 billion of China’s population at that time. Usually very poor. About 1.4 billion Aboriginal people now live in India with almost the same average income as in China 15 years ago. It was with such a “universal” introduction in the mid-2000s that China experienced explosive growth in the auto industry against the backdrop of an equally impressive swelling of the local auto market.

And just at that moment, a crowd of Chinese car brands “flooded” us for the first time. Those cars rusted right before our eyes and broke down endlessly. But they were cheap. That is why our fellow citizens, who are not particularly wealthy, but like to drive their own foreign cars, took them and did not buzz. Only later did the Chinese slowly begin to understand that the car should not only look like a car from the outside, but also look like it from the inside. And yet (who would have thought!) The car should more or less be able to drive without crumbling along the way.

Now the Chinese auto industry has almost taken the path that the “Japanese” and then the “Koreans” took their way before. And now the Indians can go down this road. Yes, they obviously don’t have an Asian mentality. A Chinese/Korean/Japanese, by the utmost concentration of all his strength, can copy a technical concept borrowed from outside and then bring it to an almost ideal level – in our case a car.

The Indians, both in perseverance and efficiency, are noticeably worse. But they already own a pretty decent auto industry. Starting with our own vintage (well, almost!) brands such as Mahindra or Tata and ending with assembly plants of foreign car manufacturers: Ford, Suzuki, GM, BMW, Hyundai and others. China started from a much more modest starting base. Today, however, it has: a fivefold increase in the volume of the national car market in almost 15 years and practical dominance in the meager Russian market.

Now, for known reasons, the buyer is happy with any car. If only it wasn’t too expensive. And in general – that was it! At the same time, all conditions are now in place for the Indian auto industry to sharply increase production volumes in a scenario close to China’s. And if so, then part of the coming multimillion-dollar auto “wave” will inevitably come to Russia. Most likely, Russian car owners will spit on the “Indians” at first, just as they used to slander the “Chinese”. But it will pass. We still can’t go anywhere from them…

photo thenationalnews.com
photo thenationalnews.com

The very first working day of 2023 brought symbolic news: India entered the top three largest car markets in the world for the first time – after China and the United States. Expelled from their homes Japan. The Nikkei agency calculated that more than 24 million cars were sold in China from January to November 2022, 13.7 million in the United States at the end of the year and 4.2 million cars were sold in Japan itself last year. At the same time in India for 11 months of 2022 – more than 4.13 million cars. Consequently, the Indians are third in the world in terms of the volume of the car market.

How is this “celebration of car life” connected with Russia? We explain. 4-5 million cars sold per year is the level of the Chinese car market in 2005-2006. With about 1.3 billion of China’s population at that time. Usually very poor. About 1.4 billion Aboriginal people now live in India with almost the same average income as in China 15 years ago. It was with such a “universal” introduction in the mid-2000s that China experienced explosive growth in the auto industry against the backdrop of an equally impressive swelling of the local auto market.

And just at that moment, a crowd of Chinese car brands “flooded” us for the first time. Those cars rusted right before our eyes and broke down endlessly. But they were cheap. That is why our fellow citizens, who are not particularly wealthy, but like to drive their own foreign cars, took them and did not buzz. Only later did the Chinese slowly begin to understand that the car should not only look like a car from the outside, but also look like it from the inside. And yet (who would have thought!) The car should more or less be able to drive without crumbling along the way.

Now the Chinese auto industry has almost taken the path that the “Japanese” and then the “Koreans” took their way before. And now the Indians can go down this road. Yes, they obviously don’t have an Asian mentality. A Chinese/Korean/Japanese, by the utmost concentration of all his strength, can copy a technical concept borrowed from outside and then bring it to an almost ideal level – in our case a car.

The Indians, both in perseverance and efficiency, are noticeably worse. But they already own a pretty decent auto industry. Starting with our own vintage (well, almost!) brands such as Mahindra or Tata and ending with assembly plants of foreign car manufacturers: Ford, Suzuki, GM, BMW, Hyundai and others. China started from a much more humble starting point. However, today it has: a fivefold increase in the volume of the national car market in almost 15 years and practical dominance in the meager Russian market.

Now, for known reasons, the buyer is happy with any car. If only it wasn’t too expensive. And in general – that was it! At the same time, all the conditions are now in place for the Indian auto industry to sharply increase production volumes in a scenario close to China’s. And if so, then part of the coming multimillion-dollar auto “wave” will inevitably come to Russia. Most likely, Russian car owners will spit on the “Indians” at first, just as they used to slander the “Chinese”. But it will pass. We still can’t go anywhere from them…

Source: Avto Vzglyad

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