China’s top carmaker SAIC Motor Corp and Great Wall Motor, its biggest maker of SUVs, are spearheading the country’s first major push into India, one of the world’s fastest growing auto markets, as gr
China’s top carmaker SAIC Motor Corp and Great Wall Motor, its biggest maker of SUVs, are spearheading the country’s first major push into India, one of the world’s fastest growing auto markets, as growth at home stagnates.
The entry is late and risky as global carmakers like Volkswagen AG, Ford Motor and General Motors have struggled to push sales in the cost conscious Indian market despite being here for more than a decade. Chinese cars also suffer from perceptions of poor quality in India.
While they plan to woo Indian buyers with their no-frills cars and cut-price SUVs, Chinese manufacturers will compete head on with established carmakers like Suzuki Motor and Hyundai Motor that dominate many markets in Southeast Asia.
Even so, India offers one of the last frontiers of growth — by 2020 the country is likely to become the world’s third-largest car market, from fifth place, with annual sales nearly doubling to five million vehicles from 2.7 million in 2015.
SAIC and Great Wall are in separate talks with the Maharashtra government to set up a factory in Pune, the state industries minister said.
A source close to SAIC said the company is considering Pune among other locations. It plans to set up a factory within the next three years and is in the early stages of researching such a move.
