Chery Automobile already has a joint venture with Tata Motors’ Jaguar Land Rover (JLR) unit in China.
In June 2017, Shanghai-headquartered multinational automaker SAIC Motor confirmed its plan to enter India. SAIC is targeting to sell cars here from 2019 onwards. And everything goes as planned, it will become the first Chinese car-maker to do so. It looks like SAIC is set to get a follower from its home country – the Chery Automobile.
Chery was founded by the Government of China in 1997 and is a state-owned corporation. The company is planning to enter the Indian market in association with Tata Motors, reports ET Auto. Chery already has a joint venture (JV) with Tata Motors’ Jaguar Land Rover (JLR) unit in China and hence it will be easy for both parties to extend the co-operation to India as well.
“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,” Yin Tongyao, chairman of Chery told ET on the sidelines of the Frankfurt Motor Show. “It may be with Tata Motors or without them, nothing is decided.”
This is not the first time Chery is exploring the feasibility of foraying into Indian markets. The firm was in talks to sell its smaller car platform with Tata Motors in 2014, reported Chinese newspaper Nanfang Daily. However, Tata Motors then formed an alliance with Volkswagen for platform sharing, forcing Chery to put its plans on the backburner. With Tata calling of collaboration with VW in June 2017, discussions over a Chery-Tata partnership resumed.
Headquartered in Wuhu in the Anhui Province of China, Chery is the country’s largest passenger car exporter since 2003. It operates 50:50 joint ventures with Kenon Holdings and Qoros in addition to the alliance with Jaguar Land Rover. Apart from several vehicle assembly plants and component manufacturing facilities in mainland China, the company has vehicles assembled in around 15 other countries.
With SAIC confirming its India entry and Chery actively considering it, other Chinese carmakers are also planning to follow suit. Beiqi Foton has apparently firmed up their India plans while Changan and Great Wall have had several rounds of discussions with Indian authorities .
Source: ET Auto