As per as Businessweek, India is now ahead of China in automobile exports, but at the same time, Indian market itself is much smaller.
(Exports till Sep'09: India: 292k cars, China: 221k cars, also India is growing while China is shrinking)
Have a look at the domestic market:
India: 2 million cars
China: 10 million cars
So, in a nutshell, India has low demand and relies on exports , while in China, all cars produced are gobbled up by the huge Chinese domestic market and no one gives a damn about export.
Link to businessweek: www.businessweek.com/magazine/content/09_47/b4156062756429.htm