@jai jaganath do not fall for any of the Chinese propaganda. These CCP agents have been posting their bullshit in this forum since ages. This is a part of CCPs information warfare. Everyone knows that.
The higher rate of car sales in China is simply because of the heavily subsidized prices, which these Chinese themselves are talking about. It helps in increasing the steel consumption.
Where as in India, specially with cars. These is heavy tax on car sales. And luxury cars invite even bigger import duties & taxes. The government is artificially keeping a check over the industry.
Why ? Because Crude oil imports single handedly contribute the biggest portion in our Current Account Deficit.China is able to mitigate this problem because they have a trade surplus.
Thus the market behaviour in both countries is different primary because of Government intervention, with different priorities.
GoI is investigating heavily on improving the manufacturing sector. And with US companies pulling out of China, we are in the best phase of our manufacturing sector growth.
Chinas growth rate has already been plataued, with their fast ageing demographic, just having subsidies would not save them in the long run.
These is an awesome video by Mr. Saurav Jha on the demerits & limitations of investment driven economic model. Do check it out to understand about the future of Chinese Economy.
