China’s Haima Automobile evaluating India entry

Founded in 1992 as a joint venture between the Hainan provincial government and Mazda to produce Mazda models for sale in China, Haima was later acquired by the FAW Group. Haima’s current product line-up in the global markets include sedans, SUVs, MPVs and electric vans.

By:Published: November 27, 2019 7:07:18 AM

Buoyed by the success of latest entrant MG Motor, another Chinese car manufacturer FAW Haima Automobile is evaluating entry into the Indian market and will make its debut at the upcoming auto expo 2020 with a display product, people aware of the development said. FAW Haima Automobile is a subsidiary of Chinese state-owned auto manufacturer First Automobile Works (FAW) Group. The company will join China’s largest SUV maker Great Wall Motors, which will also showcase its products at the auto expo and is scouting for a land in states, including Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu, to set up a manufacturing plant.

Founded in 1992 as a joint venture between the Hainan provincial government and Mazda to produce Mazda models for sale in China, Haima was later acquired by the FAW Group. Haima’s current product line-up in the global markets include sedans, SUVs, MPVs and electric vans. The company could not be contacted immediately for comments. Persons familiar with the matter said the company is likely to showcase an SUV and an electric car at the expo to get a feedback on the products. It is unclear when the company would actually start the Indian operations.

Apart from Great Wall Motors, other Chinese companies, including Changan, Beiqi Foton, Geely and Chery, are also reportedly planning to enter India within the next five years. Great Wall Motors, which will enter through its subsidiary Haval Motors by 2022, will showcase its range of SUVs at the auto expo, which are likely to be a competition to Mahindra XUV500, Tata Harrier, MG Hector and Jeep Compass. The interest of the Chinese companies to make inroads to India, the fourth largest automobile market, also stems from the fact that the new entrants like MG Motor and Kia Motors have had a runaway success with their maiden products launched this year — Hector and Seltos — respectively.

Within two months of the launch of SUV Seltos, Kia Motors became the fifth largest car manufacturer in India in October with just one product. The Seltos registered sales of 12,850 units in October and since its launch in August 2019, Kia has sold a total of 26,840 units of the Seltos. The company claims to have over 60,000 bookings. MG Motor India, which also ramped up production to meet incremental demand for the Hector SUV, said more than 38,000 units have been booked.

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