Chinese firms are looking for a foothold in the great Indian small car story.
Almost 150 automotive component firms from dragon land are participating in the ongoing 10th Delhi Auto Expo, sniffing for an opportunity to broaden their business.
Indian companies are worried, even while dismissing Chinese products as poor in quality.
“They will only be able to sell products that are not vital and need to be replaced every three to four months, not things that need to be durable and reliable,” said Ashok Taneja, director, Sam Gears, who has a stall at the auto expo.
“There are fears as their products are priced at one-third of our products, but their quality and reliability remains a big issue,” said Mohinder Pal Singh Anand, CEO, Anand Bearing International.
Taneja and Anand were just voicing an opinion expressed even by visitors to the Chinese Pavilion.
The visiting exhibitors, though, are gung-ho over the high footfalls.
“The iphone and Nokia phone that you use are assembled in China, and as you will know, it is top quality,” said Frank Lin, general manager, Dapco Auto parts.
“In China, you can get a ball bearing for $1 and also for $40. You cannot expect the same quality from both. Our expertise is we can make both high and low quality products, it is for the buyer to decide what he wants.”
“We have sold some of our products,” said Yiming Tao of Wuxi KaiLiDaSi Fuel Injection Equipment Company. “This is the first time we have come here, but the response has been good,” said Tao.