Chery International intends to soon join the list of Chinese car makers setting up shop in India. The auto maker from the neighbouring country has been reportedly planning to make an entry in the fast-growing automobile market, according to a report by The Economic Times.
Chery is already engaged in a partnership back home in China with Jaguar Land Rover, which is owned by Tata Motors. The Chinese company may explore its ties with the Indian auto giant to enter Indian auto markets, or even join hands with other partners, if need be, the report quoted Chery’s Chairman Yin Tongyao.
Chery International is a state-owned car company which is also the top auto exporter in the country. The company has sold over six million units since it commenced operations 20 years ago. Tata Group held talks with its partner in China recently over pooling resources in the direction of vehicle platforms and engines, and Chery’s possible arrival in India.
Meanwhile, several Chinese auto companies have finalised plans to enter India, whereas some are in the middle of talks. SAIC Motor Corporation Ltd, one of the largest automotive companies in the world, announced its plan to enter the Indian automobile market with a fully-owned car manufacturing facility, to be set up in the country earlier this year in June.
The $100 billion Chinese company, with core businesses spanning design, manufacturing and supply of components besides partnerships with global giants such as Volkswagen and General Motors, is expected to commence operations in India in 2019.
SAIC is expected to pick up General Motors’ Halol plant in Gujarat as the American company is desperately trying to sell its assets as it plans to exit the Indian market. The handing over process is in its last stage. The SAIC is the largest Chinese carmaker and is targeting India, which is slated to be the third-biggest auto market in the world by 2020.
The company will launch mobility solutions under the iconic MG (Morris Garages) brand. MG, which originated as an iconic British racing sports brand in 1924, has now evolved into a modern-day innovation. SAIC also owns other auto brands, including Roewe and Maxus, and acquired the MG brand in 2008.
Moreover, India’s ambitious plan to push electric vehicles at the expense of other technologies could benefit Chinese car makers seeking to enter the market. This could, however, hurt the prospects of established automakers in the country who have so far focused on making hybrid models.