Economical Cars From China and IndiaPosted August 09
New economical cars from China and India will soon be coming our way. These two countries are currently rapidly expanding their output of cars and efficient cars are high on their list of priorities. China, incredibly, is set to become the worlds biggest car producer this year.
With lots of cheap labour to call on India and China are going to produce cars that will be super competitive on price and this means we may see small economical cars breaking new grounds in terms of pricing. The question that remains to be answered is what level of quality can they deliver in a budget car? We shall have to wait and see.
The Chinese auto industry is set to produce almost 11 million vehicles this year, overtaking both the US and Japanese to become the worlds largest car maker. This is quite amazing considering we currently don't see any Chinese cars on our roads and this is what China hopes to change. If China can crack the international market their car output will sky rocket even further. India produced 2.3 million cars last year, and are also in a stage of rapid expansion.
The two countries are in a good position for international growth because cheap efficient cars are one of the few growth areas in a struggling auto industry and these are exactly the type of cars they could easily produce. China and India aren't able to compete with luxury and high quality brands such as BMW and Mercedes, but they could steal sales from the likes of Hyundai, Suzuki and Nissan if they can come up with cheap, good quality, economical cars.
As mentioned earlier the key will be quality. Indian and Chinese brands have previously struggled in this department and they desperately need to produce a couple of great cars to get rid of this image. No matter how cheap a car is or how great its fuel efficiency, a certain level of build quality and safety needs to be reached otherwise it won't sell well in Western countries. China has a total of 47 car brands and while some produce modern good quality cars, many build very poor vehicles that have low levels of safety, build quality, performance and handling. Often budget components that just aren't suitable for the job are used. Some are not even fuel efficient despite being small, and so are costly to run despite being cheap to buy.
Its a vitally important time for China and India. A lot is riding on their next few cars to be released to the international market. If all goes well for them, we can expect to see a big shake up in the cheap economical car market.
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