Rumour: Changan Auto (China) mulling entry into India

China's state-owned Changan Automobile Co. Ltd. is rumoured to be considering an entry into the Indian automobile market. The company's executives visited India in November 2014 and were looking to understand the perquisites of entering the Indian market. Most of their queries are believed to have been about the passenger vehicle market.

Changan is China's oldest and fourth largest automobile manufacturer. It has joint ventures with global carmakers such as Ford and Suzuki. It has six manufacturing bases, which are located in Chongqing, Beijing, Jiangsu, Hebei, Zhejiang and Jiangx, and 15 vehicle and engine factories with an annual capacity of two million vehicles and two million engines.

Changan is not the only Chinese manufacturer with its eyes on the Indian market. In 2009, Shanghai Automotive Industries Ltd. (SAIC) has bought a 50% stake in General Motors (India). In 2011, another Chinese manufacturer, Beiqi Fonton Motor Co. Ltd. had announced that it would set up a plant at Chakan, near Pune. The facility was expected to be functional by end-2013. The company had planned to invest $ 400 million and manufacture a full range of commercial vehicles. However, those plans are yet to materialise. Some other Chinese manufacturers are rumoured to have been studying the Indian market as well.

Global manufacturers have started dominating China's domestic automobile market which has pushed Chinese manufacturers into exploring other markets.

Source: Live Mint