The Chinese carmaker Chagan has postponed its plans to enter India. The automaker had plans to invest around Rs 4,000 Crore in India.
As expected, the ongoing situation is affecting the arrival of new carmakers in the Indian market. Chagan is among the biggest automakers in China, but as per a recent report from a media outlet, the carmaker has postponed its India arrival. The Chinese carmaker didn’t participate at the Auto Expo 2020, but just like GMW with Haval and FAW with Haima, it has plans to enter the Indian market by 2022. To sell their cars in our market, Chagan wanted to partner with Landmark Group, a major auto dealer principal that runs the dealership outlets of Nissan, Jeep and Mercedes-Benz. Rather than setting up its production facility in India all by itself, the Chinese carmaker is likely to partner with a local car manufacturer. Thus reducing the risks involved in making huge investments, because of the rising uncertainty in the market.
The carmaker had plans to set-up its production facility in Gujarat or AP
Earlier, Chagan had plans to set up its production facility as well as a distribution network in India. The brand was planning to sow in an investment of around Rs 4,000 Crore for India operations. Moreover, the Gujarat and Andhra Pradesh government were trying to strike a deal with Chagan for its first manufacturing unit. The company also had discussions with several vendors to establish a vendor park in Tamil Nadu (in Chennai). Nevertheless, the suppliers found the demands of the carmaker very difficult to meet. Earlier media reports and official announcements indicated that by 2021 or 2022, several Chinese carmakers will arrive in India and will launch a lot of new products.
The first car by the automaker for India will be the Chagan CS75
But, because of the current situation, the Chinese carmakers are having second thoughts before making such huge investments in the country. Earlier this year, reports suggested that Chagan will enter our market with Chagan CS75 Plus, which was unveiled last year in the Chinese market. Changan CS75 Plus is a C-SUV which will rub shoulders with the likes of MG Hector, Jeep Compass, and Tata Harrier. We guess that the first model will remain unchanged from its China-spec version.