Chinese firms are all out tapping the Indian automobile market at the six-day Auto Expo, an automobile show, going on here in New Delhi.

Up to 60 big and small firms from various Chinese provinces have gathered here to sell automobile parts to Indian car manufacturers and to tap the Indian replacement market.

In the replacement market, Chinese firms aim at selling automobile spare parts to consumers or automobile owners in India who need replacements at a time when their original parts wear down.

The selling point: Chinese firms offer Indian firms products at rates cheaper than Indian or foreign products and promise equally good if not better quality.

While Ruili Automobile Hydraulic Parts Co. Ltd. is showcasing a range of luxury and power-staring parts, Xintian Group Co. Ltd. is showcasing fan blades and radiators.

"The Indian car industry is a growing segment. It offers great scope for profits," said Mike Chen, managing director of Chinese Xiamen Powerlink Trading Co. Ltd. He has displayed the ball and roller bearings and joint units at the show.

Ningbao Paerma Heavy Industries International Co. Ltd. managing director Jonson Hu said he had been receiving excellent response from the Indian car manufacturers.

"This is the first step, we are exchanging visiting cards here. Once we have found recognition and have established a name, we will be able to establish a setup here," he said. the company is showcasing auto AC compressors.

Some firms have already found distributors in India and have started reaching the Indian market.

Kanwaljit Singh, senior marketing manager of Indian firm Anand Auto Corporation, is a distributor of products of Shanghai-based Wenzhou Guanshang Automobile Parts Manufacturer Co. Ltd. He said they ran a one-year trail of Chinese drive shafts on Indian cars. After successful trail, they are now targeting the market.

"Indian automobile giants Bajaj, Mahindra and Telco have shown keen interest in products of Wenzhou Guanshang Automobile Parts Manufacturer Co. Ltd.. In replacement market, distributors from north Indian areas of Madhya Pradesh and Chhattisgarh have been inquiring about these products. We are hopeful of alliances in near future," Singh said.

Kanwaljit explained that Chinese firms are offering quality spare parts for Indian cars at competitive prices and hence Indian replacement market may get good products at cheap prices.

Also present in the show with its rubber products is a leading Chinese wheel manufacturer Zhengxing Wheel Group Co. Ltd.

The show was organized by the Automotive Components Manufacturers Association of India, Confederation of Indian Industry and Society of Indian Automobile Manufacturers.

Juliet Yang, who is assistant to chief representative of Confederation of Indian Industry (CII) in Shanghai, China, said Chinese firms aim to get good business through the show.

"Many firms have received immediate orders during the show, though so far, we have no concrete data on statistics. Chinese firms are looking at exporting their products to India. While China offers products at low prices, India offers a good market to Chinese firms," she said, adding that that is why over 60 Chinese firms from all provinces are here for Asia's largest automobile show.

"This is just the first step. Right now, they are in the process of introducing themselves," she said.

Once contacts are set up, exports will start as well, the Indian car market is too big and Chinese firms will gain immensely, she added. Besides, they just might get business from firms from other nations present here as well.

Auto Expo 2006, which began here last Thursday, has bagged participation from more than 1,000 players, including 300 overseas companies from 22 countries and regions.

Source: Xinhua