Chinese biggies want to enter Indian car market

Discussion in 'Economy & Infrastructure' started by LETHALFORCE, Apr 30, 2009.

  1. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    India News Digest: Chinese Biggies Want to Enter Indian Car Market - WSJ.com


    India News Digest: Chinese Biggies Want to Enter Indian Car Market


    Chinese biggies want to enter Indian car market

    The Chinese dragon has set its eyes on the Indian car market. Two biggies Chery Automobile and Great Wall Motors are planning to enter India soon through joint ventures, senior company officials told TOI at Shanghai Motor Show.

    "We are looking at a joint venture partner for India as it holds a good potential for car sales in the coming time," Chery Automobile president Yin Tongyao said. He termed India as a "very important" market and said the company was looking at "several proposals" for finalising a local partner.
     
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  3. Yusuf

    Yusuf GUARDIAN Administrator

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    Indian car makers will have to target China as well.
    We don't know if the Chinese will be able to fine a local partner. Purely from trust point of view. And will the GoI allow China.
     
  4. Pintu

    Pintu New Member

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    An older report from The Economic Times about the Chinese FAW keen on auto manufacturing unit in West Bengal.

    Link and report from The Economic Times follows:

    http://economictimes.indiatimes.com/articleshow/4396717.cms?flstry=1


    China's FAW keen on auto manufacturing unit in West Bengal
    13 Apr 2009, 2022 hrs IST, Sutanuka, ET Bureau

    KOLKATA
    : First Automobile Works (FAW) of China has evinced an interest to set up an automobile manufacturing unit in West Bengal. A FAW
    delegation on Monday called on chief minister Buddhadeb Bhattacharjee at Writers' Buildings.

    Earlier in November 2008, senior FAW officials had visited the Tata Motors' abandoned project site at Singur to explore the possibility of setting up an automobile unit there. FAW can also hold talks with the Tata Motors to take the abandoned Nano site in future.

    A senior official of the chief minister's secretariat told newsmen after the meeting: "FAW is yet to submit a formal proposal to the state government, but it is interested in setting up an automobile unit in West Bengal. The company officials have already visited Singur and liked the site. They have informed us that around 600 acres would be needed for setting up the unit. They can also hold talks with Tata Motors to take the abandoned facility of the latter at Singur."

    However, since the state government leased over the 645.67 acres for 90 years to Tata Motors at Singur, FAW could not directly take over the land from Tata Motors. If Tata Motors returns land to the state government FAW can approach the state government for possession of the land. However, state commerce and industries secretary Sabyasachi Sen said that if Tata Motors wanted to continue the lease, which is renewable in every year, the state government will not have any objection. Tata Motors will have to pay its annual lease rental by mid-June.

    Regarding the visit of five-member FAW delegation, Sen said, "The company is now conducting a study on the Indian market. After completing the study, FAW will submit a proposal to the state government."


    FAW manufactures small cars, trucks as well as buses. The company has already signed an agreement with the Ural India for setting up an automobile unit to manufacture small cars, trucks and buses in West Bengal. In the first phase the company is keen to manufacture trucks and buses in the first phase. In the second phase, the company wants to introduce a Rs1.6 lakh small car in the Indian market.

    Ural India chairman J.K. Saraf, who accompanied the FAW delegation during the meeting with the chief minister, said, "FAW will manufacture low floor buses and mini trucks in collaboration with the Ural India now. The buses and trucks will be manufactured at Ural India's existing facility at Haldia.

    We have sought additional 300 acres land adjacent to our existing facility from the state government." The low floor buses will be launched in the market by first week of June. A FAW delegation will revisit West Bengal in 10 days.
     
  5. Su-47

    Su-47 Regular Member

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    I think we should let them come here. I know that the competition will affect the local manufacturers, but if our car manufacturers are to survive in the coming decades, its better if they are used to the competition from the onset.

    Also, new car manufacturers will create more jobs, and more tax for govt. Besides its better for customers if there is competition. Better prices, more products and better quality service will be on offer. We'll just have to ensure there is good quality control on the Chinese cars.
     
  6. Pintu

    Pintu New Member

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    The FAW of China shown interest of setting up Automobile Unit in West Bengal and I think that they will have a presence in India as a joint collaboration with Ural India by making Low Floor Bus and Trucks at Ural India's facility that existed in Haldia, West Bengal but as per the mutual trust concerned as pointed out by the respected member Su-47 the Chinese role of blocking our ADB lone will have impact on that.

    Regards
     
  7. ahmedsid

    ahmedsid Top Gun Senior Member

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    Chinese Vehicles like Chery etc are not Chinese! These Cars use Engines from Mitsubishi, ABS from US company and airbags from some other! These are just assembled by them, thats it.

    If these cars are thrown away cheap at the Indian Market, then they might have a chance I believe, but their quality is not that great, I have seen that and can vouch for it. Not only that, the models are all copied! This is what I dislike the most, they dont stand out, they just look bland and copied!

    But If they set up Business in India, maybe we can set up one in China too! It would bring in jobs.
     
  8. Yusuf

    Yusuf GUARDIAN Administrator

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    Copied and Chinese are kind of synonimous.
    But then Indian Manufacturers don't have anything to fear when the whole world is looking at India as to how it could make a $2000 car!
     
  9. Pintu

    Pintu New Member

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    ^^^That is true Yusuf, I also think that no reason the Indian companies should face fear of facing tough competition from the Chinese one, when our country our own companies have their innovative plans and also as on seconding Ahmedji and you I also prefer that we should target Chinese market as well.

    It is very much disgusting that SAIC of China made Roewe based on Rover rather coming up with their own version of Rover 75 as Roewe 750 though they bought the technologies but design are the same with Rover 75 except the Chinese one was bit longer, and even badge was of same design, they could not bought the name Rover from BMW(Source Wikipedia), but this kind of act should be kept in the mind while dealing with Chinese Automobile Companies

    Regards
     
  10. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    from a customers point of view this is a thing that was waiting to happen and hope this happens sooner just the way a 2000$ wonder happened. the direct impact will be on the prices of the cars which would compete in the similar category which will for sure impact the bottom lines of the concerned corporates. but a bigger concern will the quality of the products but will these cars not fulfill all the safety, environmental norms in india and if they do then do we have a reason to be worried because if they are not fulfilling these requirements then i doubt they will be given road clearance. i believe the bigger concern will be for the competing corporates and dont be surprised if all of a sudden one sees an upsurge in articles denouncing the quality of the products offered all sponsored at the behest of the competition. if a nano at 2000$ has offered stuff nothing to be scared of in terms of safety then i am sure a 3000(+)$ car from a market where economics of scale has great advantage would certainly be worth a buy for most of the indian customers.


    with competition one can expect the indian corporates to be more innovative trying to give the maximum in least amount of investment which would in return mean creating more value for the customer which will help our indian products in competing better with their rivals from across the world not only in india but across the world where ever they intend to market their products. this will also allows our companies to have a better understanding of how the chinese go about marketing their product which will help in creation of counter measures which could for sure be replicated in other overseas markets as well. this as and when it happens will be the best thing to happen to our auto industry if they intend to be a global leaders with few of the finest home grown products and for that we have to learn to compete with the chinese who in times to come will be our worst competitors.


    anyways not long back some 4-5 yrs back there was this real hoopla about chinese motor bikes entering india, any clues what happened to that episode, if i am not wrong then there were some serious quality issues with those and were not given the clearance.
     
  11. SATISH

    SATISH DFI Technocrat Stars and Ambassadors

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    No one can pull out what TATA has been able to pull out. You need to be in all fields like TATA to pull out something like the Nano. He was the guy who called Electric Car a joke and funded the MDI compressed air car engine. You need to be a visionary not a businessman to make something like the Nano.
     

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