After building the mutual partnership for making and selling cars in China since 2012, Tata Motors is in advanced talks with China’s state-run Chery for the same joint venture in India.
While Tata Motors is known for being the fourth-largest passenger car manufacturer in India, Chery is one of the market-leading automakers in China as well. The two automotive giants first announced their joint collaboration for car manufacturing and sharing in the Chinese market in 2012 and now, they are looking to create an equal alliance for the Indian auto market and all.
Chery Automobiles Co., Ltd is mulling over entering India through the joint venture with the country's largest home-grown carmaker, Tata Motors.
In fact, it is considered a stepping stone of Chery Automobiles to make its entry into India- the world’s fastest-developing major auto market. The nature of Tata and Chery partnership is yet to be finalized, but it will more likely to involve in vehicle retail sales tie-up as well as technology sharing. Now that the Chinese-owned automaker seems not to have a brief understanding about the Indian customers’ mindset and preference as much as the other Japanese adversaries do, having a local counterpart to lead the way will give Chery an easy ride.
In the current context, the total auto sales in China are expected to stagnate in the foreseeable future. Various automakers in China are seeking their ways to penetrate into the fast-growing and emerging markets like India in the long run.
Chery's products have been exported to more than 80 countries and regions around the world. The first product under Chery-Tata JV is set to come soon.
Established in 1997 as the first state-owned auto brand, Chery has been providing products for the masses and trying hard to “reach for the stars’ in more than 80 nations and regions across the globe. In fact, the company has become China’s largest passenger cars-exporter for around 16 years successively.
Aside from Chery, some other auto majors like Great Wall, Geely and SAIC-owned British-branded MG Motor have set their sights on India as well. Particularly, MG Motor has already kicked off its journey with the introduction of MG Hector SUV set to happen in June 2019. Some other international brands comprising Citroen from France or Kia from South Korea have also officially confirmed its plan to enter our market in the near future.