I reported just the other day that India’s car sales have jumped in recent months, and I mentioned in the article (and I quote myself): “even foreign auto makers producing cars in India are likely doing so at a discount in labor prices thus enabling them to make sales at lower costs relative to outside competition.  The sad fact is that America will have a very difficult time selling cars in two huge markets, India and China, because our union labor rates make cheap cars an impossibility for the most part.”  Well, my prediction has come true, and you now know that you can trust my opinions on matters such as these because China has indeed also posted good numbers which just came out today.  According to http://news.xinhuanet.com/ red China has American faces red with their car sales:

“BEIJING, March 10 (Xinhua) — Sales of domestically made cars rose 12.4 percent month-on-month and 24.7 percent year-on-year to 827,600 units in February, the China Association of Automobile Manufacturers (CAAM) said Tuesday.”

Again, like with the India article, this rise is being credited to a minor tax break from the government on certain types of cars.  The more likely reason for the sales increase is low production costs and little competition in the lower price auto market.  China and India are becoming capitalistic and basically beating us at what used to be our game.

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