India Looking To Attract Foreign Automakers In The Midst Of U.S.-China Trade War

India is looking to cash-in on the ongoing trade war between the United States and China by attempting to attract foreign automakers to its shores.

Auto News reports that officials from India have spoken with a number of large companies including Apple, Foxconn and Wistron Corp to encourage them to shift business out of China.

On the automotive side, it is reported that officials met with local delegates from the Volkswagen Group, Hyundai, and Honda to encourage them to move certain supply chain operations from China to India. Unsurprisingly, the three automakers’ representatives have declined to comment on the issue.

Also Read: Tesla Increases Prices In China As Trade War With U.S. Rages On


The trade war between the United States and China has forced companies to seek new supply chains. Google, for example, has announced that it will shift production of its Pixel smartphone from China to Vietnam later this year.

“There is one other monster country that has a huge domestic market, India, but they have got to get moving,” U.S.-India specialist at the Center for Strategic and International Studies in Washington, Richard Rossow said. “There is no time to waste in catching that new wave and in fact the question is: Have they already missed it?”

Volkswagen has a hugely significant presence in the Chinese market, where it operates no less than 14 subsidiaries and employs roughly 100,000 people. It also operates eight factories across China, including two for its local Chengdu-FAW Volkswagen joint venture.

Fortunately for Volkswagen, and other foreign automakers, there is talk about the U.S. and China de-escalating the trade war following an announcement from the Asian superpower that it wouldn’t immediately return fire over Trump’s latest tariffs.

Whatever happens, India is poised to make the most of its opportunities to attract new business.

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