Chinese carmaker eyes India entry, may piggyback on Tata Motors
According to reports, Chinese carmaker Chery International intends to make an entry into India's automobile market. The state-owned car company already has a joint venture with Tata Motors-owned Jaguar Land Rover in its own country. Chery's Chairman Yin Tongyao said that the firm may go for a tie-up with Tata Motors or look for other partners better suited to its needs. Here's more.
Chery International is among the expanding list of Chinese car makers interested in India. Recently, Tata Group had discussions with the firm about its Indian debut plans and a collaboration for platforms and engines. A successful JV will benefit the Indian auto giant and China's top auto exporter. Chery International, which started operations 20 years ago, has sold over six million units till date.
Chinese carmakers are interested in India to tap into the burgeoning demand because back in China, car sales have slowed down. Tongyao said to ET, "India is a great country with a good heritage. We have a partnership with Tata Group. We may explore a tie-up to enter India." However, "It may be with Tata Motors or without them, nothing is decided," he added.
Most of the Chinese carmakers, planning to enter India, are in talks with the Indian authorities. However, among them, China's SAIC Motor Corporation Ltd, one of the biggest automakers worldwide, has announced that it will enter India with a fully-owned car manufacturing plant. The firm, which enjoys strong partnerships with industry behemoths such as Volkswagen and General Motors, plans on kick-starting operations from 2019.
According to reports, SAIC will take over General Motors' Halol plant in Gujarat, which the American carmaker, planning to make an exit from the Indian market, wants to sell off. The deal is in its last stage and if everything falls into place, SAIC will enter, what is estimated to be the world's third-biggest auto market, very soon.