Automobile Industry in China and India

Table of Contents

Introduction 3
1 The Nature of the Automobile Market 4
1.1 China: 4
1.2 India: 5
2 The Country Situation in India and China 7
2.1 China: 7
2.2 India: 8
3 The Type of FDI to Further Minimise Risks 10
4 Conclusion and Recommendations. 10
5 Bibliography 13
6 Appendices 17
6.1 List of Tables: 17
6.2 List of Figures: 22

List of Tables

Table 1: Comparison of Key Economic Indicators in China and India 17
Table 2: China - Top 10 Manufacturers ' ' Sales Rank 17
Table 3: India - Turnover of Automobile Manufacturers 17
Table 4: India - Automobile Production (2001-07) 18
Table 5: India - Automobile Domestic Sales (2001-07) 19
Table 6: India - Automobile Export (2001-07) 20
Table 7 - FDI Inflow, by regions and selected countries (1994-2005) 21

List of Figures

Figure 1: China 's growth surpasses that of India 22
Figure 2: China -YTD April Sales by Manufacturer 22
Figure 3: There will soon be more cars in India & China than the US 23
Figure 4: India - Domestic Market Share in 2006-07 23

Introduction

The automobile industry in China and India increasingly showing rising importance in the global scale. Thus, both are gradually viewed as a serious competitor in the global automobile industry (Fairclough and White 2007). This report looks in depth in the automobile industry of China and India to try to come to a conclusion and recommended investment in the automobile industry.

The report looks at the nature of the automobile industry in both countries. This includes, market size, competitors and demand. Then we review the countries ' situation to review FDI policies, infrastructure, and risks. This is followed by recommended FDI strategy for further minimizing risks and comparison of China and India to recommend specific location of investment. 1 The Nature of the Automobile Market
1.1 China:

In 2006 the Chinese passenger car production exceeded this of the U.S. for the first time, churning out 5.2

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