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Chinese influx poses threat to Indian auto makers; 20% market could be lost

Analysts point out that competition in India is lower than in America or Europe

MG Motor India unveiling of MG Hector
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Several Chinese carmakers are hoping to repeat the success of SAIC Motor Corp, whose MG Hector set early sales records in India

Pavan Lall Mumbai
At the upcoming annual auto expo in New Delhi, more than a third of the exhibition space is booked by Chinese auto makers such as the  largest maker of utility vehicles Great Wall Motors, FAW-owned Haima Automobile, and state owned SAIC which has seen its SUV, the MG-branded Hector, notch up record early sales. '

The physical space occupied by them is a clear demonstration of the inroads that Chinese players are making into the India auto scene. Chinese OEMS recently bought General Motors’ plant in Gujarat. Byd, a top-ranked Chinese firm that makes trucks using LNG (cheaper than diesel)

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