Great Wall Motor in talks to enter India: SIAM

Great Wall Motor Co is in talks to open a plant in India, a move that would make it the first Chinese carmaker to operate in the country without a partner.

"They are meeting industry. They are meeting government. They are meeting suppliers," Vishnu Mathur, director general of the Society of Indian Automobile Manufacturers - a lobby group, told Reuters in an interview on Monday.

Great Wall, which sells its sport-utility vehicles and pick-up trucks in other emerging markets such as Russia and South Africa, is not yet present in India's booming SUV market, one of a few bright spots in the local automotive industry.

China's eighth-largest car maker, which sent a delegation to India last week, is targeting 2016 to start manufacturing in India, Mathur said, adding Great Wall executives met SIAM representatives last week.

Great Wall was not available to comment.

Passenger utility vehicle sales, helped by subsidies on diesel fuel, rose 62 percent in the April-November period, while car sales rose 1.3 percent.

New entrants will compete with market leader Mahindra and Mahindra and Tata Motors. Also, Italian carmaker Fiat said last week it would launch Jeep, an SUV brand controlled by US subsidiary Chrysler, in late 2013.

While India has attracted billions of dollars investment from overseas manufacturers, such as Ford, General Motors and Toyota, Chinese carmakers have yet to make significant inroads.

Chinese group SAIC Motor Corp cut its stake in GM's Indian operations to 9 percent in October, from 50 percent.

A slowdown in India's car market over the past 18 months has raised fears of overcapacity, with sales expected to grow 1-3 percent in the financial year that ends in March.

Great Wall, China's largest car maker without a foreign partner, aims to more than double annual sales by 2015 by targeting more overseas markets, its chairman said last month.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Kerala, god’s own country, will always be free spirited

    Candy is dandy, but liquor is quicker,” the celebrated American poet Ogden Nash had once said famously.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>:The over-the-top effect effect

The overconfidence effect is a bias in which someone’s subjective ...

Parvez Imam

The absoluteness in representations

When a representation replaces the original object or subject, a ...

Dharmendra Khandal

Religion and conservation must go hand in hand

In 1986, former president of WWF International, HRH Prince Philip, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture