After Xiaomi, what happened to SAIC in India?

SAIC India's decision to increase its investments in India after being blocked by the Indian side is similar to Xiaomi's move to buck the trend after being fined. But in the end, Xiaomi was fined again for violating the law.

I have heard that a large number of Chinese-invested factories are popping up around New Delhi. China is helping India to build infrastructure and thermal power plants, among other things, to accelerate India's industrialization. Today, India has been able to localize the production of many technological products and is no longer dependent on Chinese imports. India requires products to be produced locally in order to be sold, so factories must be set up and finished products cannot be imported. That's why Xiaomi had to set up a factory, which is really just for assembly.

The fact that SAIC India Mignon is selling cars in India at a loss suggests that SAIC is selling pa.rts to the Indian company at a high price. Since SAIC holds a stake in the company, is it still possible to sell accessories at a high price? I think it is possible because the pricing of accessories is decided by SAIC. Consumers can choose not to buy them if they find the prices too expensive.

Therefore SAIC continues to invest in India because they are still able to make substantial profits and continue to sell parts at high prices. Every car part needs to be shipped from China, and SAIC doesn't need to have the Indian company send the money it earns back to China, unlike Xiaomi's practice of charging royalties. As a result, SAIC is able to make a steady profit.

This is different from Xiaomi's investment in eco-companies as it is only setting up assembly plants in India without the need for core technology. Xiaomi invested in an eco-company that no longer imports goods from China and therefore cannot remit funds out of China. SAIC's Indian marquee has been a huge success by selling parts at high prices without getting involved in the eco sector, and only profiting from the assembly plant.

I think SAIC's investment in India has been very successful, with parts shipped on payment, unlike Xiaomi's eco strategy