Chinese Carmaker JAC Plans India Entry

Published: Tuesday, July 5, 2011, 16:24 [IST]

Chinese carmaker Jianghuai Automobile Company (JAC) is planning to enter the Indian car market and launch commercial vehicles and passenger vehicles. JAC believes India will be one of its key markets. JAC is China's eighth largest carmaker and sold 460,000 vehicles last year. IT is currently planning to increase sales by 30 per cent to 600,000 units, which is comparable to India's Second largest carmaker Hyundai Motors' sales targets.

JAC has not specified if it will enter the Indian car market as an independent company or if it will have an Indian partner. It has also not specified when it is planning to start business in India. JAC currently has a wide line-up of models which include passenger vehicles, buses, trucks and light commercial vehicles. It has also launched an electric vehicle called the Tong Yue in China.

JAC is not the only Chinese carmaker to be interested in India. With India being touted to become the world's fourth largest car market, other Chinese carmakers such as Shanghai Automotive Industry Corporation (SAIC) and Beiqi Foton have also expressed interest in India.

SAIC has already made its presence felt in India through its joint venture partner General Motors. SAIC's commercial vehicle will be built by General Motors at its plant in Halol, Gujarat and they will be launched by 2013. Three passenger cars are also expected to be in the pipe line.

Beiqi Foton has announced an investment of Rs 1,676 crore to set up a facility in western Maharashtra. The company is planning to build light, medium and heavy commercial vehicles here. Foton Motor, a subsidiary of Beijing Automobile Group Co Ltd, is the world's second-largest commercial vehicle manufacturer after Daimler. The company sold 682,800 vehicles in 2010.

Considering the increased interest of Chinese carmakers in India, it is clear that the country is on its way of becoming a true auto hub.