New Delhi: China may be the world’s shopfloor, but India is rolling it out faster when it comes to auto exports. India exported a total of 2.29 lakh cars, vans, SUVs and trucks between January and July, a growth of 18%, even as China’s exports tumbled 60% in the same period to 1.64 lakh units.

The Indian domestic market may be just 19% of China’s — which has overtaken the US to become the world’s largest market — but the ‘Made In India’ tag, especially on small cars, has clearly acquired a global cachet, helping auto exports grow even as other countries suffered a slump.

Industry experts said India scored due to its liberal investment policies and high quality manufacturing, which stems from a healthy R&D prowess that appears to be strengthening by the day.

India’s biggest advantage is its edge in small cars and the way companies are using the market for selling, as well as developing, newer models. While India itself presents a big opportunity in small cars given their big-volume status, the global recession and incentives offered for fuel-efficient low-emission vehicles in Europe and the US also make India a focal point for companies. Cheap labour costs and especially-tailored lower manufacturing tax (8% excise duty) make small car manufacturing in India a highly-competitive option which more and more companies are padding up for — Suzuki, Hyundai, Nissan, General Motors and Toyota, to name a few.