China is the second-largest car market in the world, but it’s also the country’s biggest export market.
That’s why Chinese automakers have been turning to India as their main export market, even though it’s not as lucrative as the United States.
In India, where the car market is booming, the best place to buy cheap sports cars is in China.
The Indian market is estimated to be worth about $1.2 trillion and China is second only to India in terms of sales, with a market value of about $2.2 billion, according to a recent report by the consultancy KPMG.
There are more than 400,000 sports car manufacturers in India, including Fiat, BMW, Daimler, Audi, Ford, Jaguar Land Rover, Lexus, Mercedes-Benz, Porsche, Renault and Toyota, according a KPMGB report.
But there are only about 50,000 private-sector owners of such cars, according the report.
The Indian government wants to increase the number of private owners of affordable sports cars to more than 500,000, but so far, private owners have been limited to the automotive sector, said Nisha Jain, an expert on car industry and finance at New Delhi-based KPML.
India is also a leader in low-carbon energy technology, with its largest battery-powered vehicles and the largest hydroelectric dams.
So when Indian manufacturers are looking to sell cars in the United Kingdom and the United Arab Emirates, the country is the preferred destination, said Ramakrishnan, an economist at the Delhi-headquartered consultancy McKinsey & Bacon.
But it’s a different story in the car industry.
“There are a lot of Indian automakers that are going to India because of the Indian market, but they don’t want to sell their cars there,” said Rajan Singh, a vice president at car consultancy McKinley.
The automotive industry is also dominated by the likes of Tata Motors and Hyundai, which make the majority of the cars sold in India.
While India has some of the world’s most liberal trade agreements, it’s still not perfect.
India is one of the only countries in the global economy that doesn’t allow for the export of liquefied natural gas (LNG), which can be used to power industrial plants.
That means the automotive industry faces a tough transition to LNG exports.
India has one of Asia’s most competitive lignite markets, where it can export about 70 percent of the gas it consumes domestically.
But because of its energy-intensive economy, India needs to import most of its lignites from other countries to meet its LNG needs.
That has made it hard for auto makers to make LNG-sourced vehicles.
India, which has just 8.4 million cars per 1,000 people, has one LNG plant, but the amount is only about 20 percent of what it needs.