Big Changes: Car Giants Move to India
Japanese car companies, Toyota, Honda, and Suzuki, have decided to spend a huge amount of money building cars and starting new factories in India. They want fewer parts and cars coming from China. Now they want India to be the main country to make and send cars to other places.
Why India and Not China?
China used to be the place where most Japanese cars were made. But now, it’s very hard for them to earn money there because Chinese car companies sell cars very cheap, making competition tough. Also, India does not allow new Chinese carmakers, making it safe for Toyota and Honda. One expert, Julie Boote, says India looks better for Japanese car brands because Chinese companies cannot fight there.
How Much Money Are They Spending?
Toyota, the world’s biggest car company, and Suzuki, the Indian car market leader, are spending together $11 billion. Suzuki wants to make 4 million cars every year in India, going up from 2.5 million now. Toyota is working to launch 15 new car models in India before 2030. Honda, too, wants to make electric cars in India and send them to Japan and other Asian countries.
Local Jobs and Local Parts
Japan’s car companies like India because making cars here costs less, and there are lots of people who can work. Toyota and Suzuki own most of their car businesses in India, Honda owns all. With these new plants, more local jobs are coming.
Help From Government
India’s government wants car companies from all over the world to make cars here and send them from here. Prime Minister Modi’s government gives special rewards for companies that make cars and parts for other countries. India also makes it hard for Chinese carmakers to start up, which helps Japanese companies.
Toyota’s India Plans
Toyota is working with both Indian and Japanese suppliers to make parts, like hybrid car pieces, cheaper. They want to make their cars fit India better. They hope to increase their market share from 8% to 10% by the end of the decade. Toyota wants to make over 1 million cars a year in India soon.
Honda’s India Plans
Honda has been making lots of bikes in India for years. Now they want to do the same with cars—especially electric cars. Honda’s CEO says that after the US, India is most important for their car business.
Suzuki’s Future Hub
Suzuki’s Indian car company, Maruti Suzuki, is already the biggest car seller and exporter in India. Suzuki has plans to make India its global center for making and exporting cars.
The Big Picture
In the past 3 years, Japan’s money spent on India’s car sector has grown 7 times. Japanese companies’ spending in China has dropped by 83%. India made almost 5 million cars last year, selling most in India but exporting about 800,000 cars too. Local Indian companies like Tata and Mahindra are also doing well, adding SUVs and competing strongly.
What’s Next?
India will see more cars made for its roads, and more new car models will arrive. The world is watching this shift, and soon, lots of the cars on Indian roads and those sent abroad will have “Made in India” written proudly.
