Analysis of the status of trade development between China and India in 2022

    From January to October 2021, the total bilateral trade volume between China and India exceeded 100 billion US dollars, reaching 102.29 billion US dollars, a substantial increase of 47.8% year-on-year. China is India's second largest foreign trade country.

    According to Indian customs data, in the first eight months of 2021, the import and export volume of Indian goods was about 603.2 billion US dollars, a year-on-year increase of 49.09%. Among them, the export was 254.48 billion US dollars, and the import was 348.72 billion US dollars. The trade deficit was US$94.24 billion, an increase of 59.8%.

    Machinery and appliances account for 41% of the total bilateral trade between China and India

    The automobile industry has always been one of the key industries in India. With the continuous growth of the economy and the relative increase in the national purchasing power, the development potential of the Indian automobile industry cannot be underestimated. It is expected that the industrial output value will increase significantly by 2026, with the output value of automobiles reaching 282.8 billion US dollars and the output value of spare parts reaching 100 billion US dollars.

    At present, India has only 22 vehicles per thousand people. Based on the global average of 182 vehicles per thousand people, the Indian auto market has at least 8 times the growth space.

    In 2017, India sold 4.02 million vehicles, surpassing Germany's 3.81 million vehicles, making it the fourth largest auto market in the world.

    The major Indian automakers are Japanese and Korean automakers. Japanese Suzuki, Honda and Toyota ranked first, fifth and sixth in terms of annual sales, while Korean automaker Hyundai ranked second.

    There is a high demand for car repair and maintenance, which is our business opportunity.

    There are about 30 million cars in India, 68% of which are more than 3 years old. In addition, the poor road conditions in India, with potholes everywhere, make cars extremely vulnerable to damage, thus creating a huge car after-sales service market in India.

    In the past ten years, the Indian auto parts market has boomed, and the industrial output value has increased from $26.5 billion in 2008 to $43.5 billion in 2017.

    At present, there are tens of thousands of enterprises in India's auto parts industry, including about 10,000 small and medium-sized enterprises with less than 20 employees, and about 700 large enterprises above designated size.

    Large enterprises mainly supply automobile manufacturers, while small and medium-sized enterprises mainly focus on the after-sales service market, and 85% of the industrial output value comes from large enterprises. OICA predicts that the output value of India's auto parts industry will reach 100 billion US dollars by 2026.

     Combined with the auto parts export data of our production base in the past six months, the current demand for strut mount and engine mount is strong, and the order has been placed until the end of the year. From the analysis of importing countries, India , Sri Lanka and some middle East countries currently account for 50% of the total, and Europe and the Americas account for the other general share.

    We recommend that you continue to pay attention to the segmented demand for after-sales vehicles in the local market, especially the subsequent after-sales demand for Japanese and Korean models will increase rapidly, and satisfying this part of the market demand will yield satisfactory returns. The market demand for high-end cars will also continue to maintain strong market demand as the overall market improves.

    The main reason why many customers place orders in advance this year is that the Chinese New Year in 2023 will arrive earlier than in previous years. According to past practice, when factory workers returned to their hometowns ahead of schedule, logistics would be delayed or suspended. I suggest that you plan your order in advance for this year, try to be as early as possible, and ensure that there is enough time for production delivery and normal shipping services.