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Chinese based auto manufacturer, Changan's entry into the Indian market has been delayed. Changan is one of the largest auto manufacturers in China who are associated with other brands like Ford, Groupe Renault and Suzuki in the international markets.
According to the recent reports from ET Auto, the company initially decided to enter India and were in talks with Group Landmark that runs a dealership network for Mercedes-Benz, Nissan and FCA. Both companies signed a memorandum of understanding last year, however, there has been no progress in the partnership ever since.
The delay is majorly due to the ongoing Covid-19 pandemic across the world. Like most businesses, the pandemic has affected the Chinese brand's plans for entering the Indian market. The reports suggest that there could be at least a year added to the initial plans, postponing the debut to 2023.
Unlike other Chinese automakers, Changan didn't showcase any of its exhaustive line-up of vehicles at the 2020 Auto Expo. Brands like Great Wall Motors and FAW who are also based out of China showcased their products and have planned to enter India by 2022. This could be a serious set back for Changan as we have not heard of any delays with the other two manufacturers in setting up shop in India.
Initially, Changan decided to enter the Indian market all by itself by setting up a manufacturing plant in India. However, due to the current delay, Changan may consider partnering with a local manufacturer. This will help the company with lesser investment and will a low-risk route to enter India.
The Chinese brand planned to invest Rs 4,000 crore for its India operations including its own manufacturing and distribution companies. The company planned to set up its first facility in either Gujurat or Tamil Nadu, with both state governments trying to strike a deal with Changan. It was also in discussion with several vendors to establish a vendor park in Tamil Nadu. However, there was no progress made on the request as the vendor reports that the requirements were extremely difficult to meet.
In January this year, it was reported that Changan's first vehicle in the Indian market would be the CS75, a mid-size that would rival the Hyundai Creta, Kia Seltos and the MG Hector; among others. The company has an exhaustive line-up of vehicles including crossover hatchbacks, sedans, SUVs, MPVs and PHEV models as well. The company also has a line-up of commercial vehicles as well.
Thoughts About The Changan Chinese Auto Manufacturer India Debut Getting Delayed
Due to the ongoing Covid-19 pandemic, a lot of businesses have suffered from delays in their plans including Changan Automobile. The Indian Government is currently promoting local manufacturing during these times. Whether the Changan's entry will further get delayed due to the current initiative remaining to be seen.