INDIA'S CAR EXPORTS OVERTAKE CHINA'S

       The Indian auto industry, whose market is only 19 per cent as big as that in China, has an edge in exports.
       Suzuki, Hyundai and Nissan are making India a hub for overseas sales of minicars, as incentives lift demand for smaller, fuel-efficient autos. Helped by cheaper labour and a surging local market, India this year over-ttok China in auto exports and is challenging Thailand and South Korea as an alternative production centre in Asia.
       "There is a worldwide shift toward fuel-efficient, compact cars," said Jayesh Shroff, who helps to manage assets worth about US$7 billion (Bt239 billion), including carmakers' shares, at SBI Asset Management in Mumbai.
       "This offers a huge potential for India and it can emerge as a leader in the small-car segment."
       Maruti Suzuki India's exports have more than doubled to 79,860 this year. It aims to ship 130,000 vehicles in the year to March 2010, 86-per-cent more than last year, said chairman RC Bhargava.
       Maruti Suzuki sold a monthly record of 14,847 vehicles overseas in August. India's exports of minicars and hatchbacks gained 44 per cent between January and July to 201,138, according to the Society of Indian Automobile Manufacturers. Total exports, including vans, sport-utility vechicles and trucks, rose 18 per cent to 229,809. Cars are exported to more than 100 countries, not including the US or Japan.
       In contrast, China's exports slumped 60 per cent to 164,800 vehicles between January and July, according to government data. Vehicles produced in Thailand for export declined 43 per cent to 263,768, according to the Federation of Thai Industries' Automotive Club.
       South Korean exports dropped 31 per cent to 1.12 million units, according to the Korea Automobile Manufacturers' Association. Japan, the world's largest automobile producer and exporter, shipped 1.77 million cars, trucks and buses. Of those, 135 were minicars and 439,849 were compacts.
       Besides the attraction of serving a market where three of four cars bought are compact, auto-makers will favour India to set up an export base because China requires companies to form local joint ventures and India does not, said London- based managing director of Intelligence Automotive Asia, Ashvin Chotai.
       "It makes companies more comfortable to have an export strategy when they have full control," he said. "They don't have to give up some part of the profits to their partner."