China’s Great Wall Motors contemplating India entry
Posted on: Dec 11, 2012 - 2:54pm IST
Chinese SUV specialist Great Wall Motors is exploring the possibilities to foray into highly competitive Indian auto market on their own.
NDTV Profit reports that the 8th largest Chinese car maker is in talks with Indian government to set up a shop here. The company has sent a group of delegates to India last week to explore the chances. They reportedly have a target of setting up a manufacturing unit by 2016.
Mr. Vishnu Mathur, Director General of Society of Indian Automobile Manufacturers (SIAM) told in an interview to Reuters that, “They (Great Wall Motors) are looking at coming into India to set up manufacturing. They are meeting industry, they are meeting government, they are meeting suppliers.”
He also added that Great Wall executives met with SIAM officials last week but he declined to discuss about the investment planned.
Great Wall is the largest SUV maker in China and is also the largest independent Chinese auto manufacturer. If the company sets up a plant in India, it would become the first Chinese company to establish a wholly owned subsidiary in India. SAIC another Chinese company owns 9% stake in GM India.
It is to be noted that the Great Wall Haval H5 SUV was caught testing in India earlier this year. The Haval H5 has passed the Euro-NCAP tests and also has a decent interior making it a rival to SUVs like Mahindra XUV500, Tata Safari Storme and Force One.
If everything goes by plans, Great Wall Motors could start assembling its line of SUVs here in India. It would mean a massive investment since the Chinese company is believed to be entering India on its own without any partners.
Will Great Wall Motors manage to find enough number of takers to justify the hefty investment?