China's automobile market is gaining the interest of foreign auto manufacturing companies, and the latest one to be attracted is India's leading SUV manufacturer, Mahindra.
The Indian carmaker is reportedly looking for a partner in China to begin its foray into the Asian country, with a focus on manufacturing and selling electric vehicles.
Mahindra Electric, the carmaker's electric vehicle manufacturing arm currently sells its vehicles in the Indian subcontinent and in the UK.
Along with Mahindra's interest in the Chinese market, the company could face competition from other Chinese electric vehicle companies which are backed by industrialists such as Jack Ma and Terry Gou.
Looking at the brighter side, China is looking to have around five million electric vehicles in the country by the year 2020. This could reap benefits for Mahindra if the carmaker is setting up a manufacturing facility in China.
Also, by finding a Chinese partner, Mahindra can earn more benefits by establishing a production line in China.
Mahindra and Ssangyong, the South Korean carmaker have signed a deal with Shaanxi Auto, based outside Xi'an in the Shaanxi province, to explore possibilities of a setting up a manufacturing plant in China.
The joint venture between the two brands may help Ssangyong set up its first production plant overseas. The company claimed that it is looking at China to make up for the decline in demand after Britain's exit from the EU.