Chinese auto makers eyeing India as its low cost export base
Indian auto Market with its success, spreading like wildfire is hogging a lot of attention from major auto players around the world. A special mention to the Chinese auto market that stands first in the world in terms of growth in the auto industry sees India as a low export cost base. The Indian auto industry was in its golden phase when it reported a 30% growth in car sales in the month of May.
Chinese auto players like Foton, SAIC, FAW, Chery, Geely and Great Wall have huge plans for India that include the introduction of everything from mini vans to passenger cars to heavy duty vehicles. While SAIC and FAW are paving their way to the Indian market through global joint ventures, others plan to do the same but with Indian partnership.
General Motors, is one such company that plans to introduce its models in China through a three way alliance with Wuling and SAIC. SAIC that operates in collaboration with GM in China has purchased 50 percent of GM India. GM, besides planning to launch mini vans and other light vehicles will also introduce trucks with its other business partner, FAW. Foton is yet another Chinese company that wants to lay hands on the Indian market. It plans to invest 200 million dollars to set up a 100,000 unit plant utilizing locally sourced parts and components. Foton's proposal to India not includes tractor trailors and trucks but also SUVs and pick ups
The remaining companies like Chery, Geely and Great Wall are holding discussions with ICML,International Cars and Motors, car division of tractor manufacturer Sonalika, informed a source. However ICML's CEO Deepak Mittal maintained silence on the subject.
Chery, Geely and Great Wall are in advanced talks with International Cars and Motors (ICML), the car division of tractor maker Sonalika, said a person with direct knowledge of the development. ICML’s CEO Deepak Mittal, however, refused to comment.
Chinese companies not only want India to be a low cost but a high quality export base, a strategy that Hyundai and Maruti have successfully adopted and implemented. Component companies like Yapp Zoom Automotive systems has chosen Mumbai's Zoom Developers as its partner. The JV has already started production earlier this month, at its manufacturing plant located at the Ford's Suppliers Park. Yapp also also confirmed business from Ford Fiesta and Ford Figo. It also, currently a 100 percent supplier for Volkswagen Polo and Skoda Fabia.