China and India Racing Forward

Nick Smith
January 25, 2010

China and India Racing Forward

In the world today, the economy is constantly changing. Along with it, the many markets of the world change as well, including the car industry. China and India’s car industries are growing rapidly. These countries have many of their own companies, such as India’s Tata Motors, and they are making new revolutionary cars, especially in the super-compact car market. The auto industries of both of these countries have shown recent improvement as the rest of the world economy begins to recover. Additionally, there is increasing demand for cars in these countries and the governments have been providing incentives for people to buy cars. Along with having its own car companies, India and China are used as manufacturing centers for car companies from other countries that outsource cars to be sold outside of India and China. Given these reasons, I believe that China and India will become worldwide powerhouses in the auto industry.
Since the very first car was driven there in 1893, America has always been a powerhouse in the auto industry (“The First Car.”). Henry Ford created the first practical car for Americans when he developed Ford’s Model T (“Henry Ford.”). The city of Detroit is home to three of the biggest car companies in the world, General Motors, Ford, and Chrysler (“Detroit.”). There are fourteen automakers that manufacture cars in the United States. America produced over 8 million vehicles in 2008 (“Automotive industry in the United States.”). Historically, China and India were far behind the Americans in car production. India’s auto industry was non-existent before the 1940’s (“Automobile industry in India.”) and China didn’t produce its first automobile factory until 1956 (“Automotive industry in the United States.”).
However, over the last ten years, car production in India and China has been growing rapidly while production in the United States has actually been declining (See.