China's Changan Automobile Company plans to enter India in the next financial year, reported ET Now. This will be the first investment by a Chinese car maker in India. The report comes as growth in the world's largest auto market nears stagnation and price competition intensifies.
In April its President Zhu Huarong said that China’s indigenous automakers lack pricing power and lag established global brands in major market segments such as sedans.
An Associated Press report stated that sales of SUVs, the popular option on China's rough roads, soared 52% last year, the only product segment that still is growing in the world's largest market. Sedan sales contracted by 5.3% and those of minivans plunged 17.5%.
Changan Automobile Company, China's fourth-biggest automaker by sales volume, has a joint venture in China with Ford Motor, Suzuki and PSA Peugeot Citroen.
In November 2015, the Chongqing based automaker announced that it would invest 30 billion yuan ($4.7 billion) in research and development (R&D) over the next five years.
The Chinese automaker specialises in no-frills cars, sedans and SUVs. Some of its popular models are Alsvin, Benni, CX20, CS35 and CS75. It will be intresting to see which models Changan will launch in India.
The company claims it has 6000 sales and service facilities in more than 60 countries.
(With inputs from Agencies)