Azazel
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China's Auto Makers Foton, Great Wall to Enter India
NEW DELHITwo of China's biggest auto makers plan to sell their vehicles in India, a move which will likely allow them to diversify into this potential growth region for automobiles amid slowing sales in their home market.
Beiqi Foton Motor Co. acquired a plot of land in western India's Maharashtra state to build a commercial-vehicle factory, an Indian auto-industry executive said Monday.
Sugato Sen, deputy director-general of the Society of Indian Automobile Manufacturers, said that Chinese auto makerGreat Wall Motors Co. also is considering a plan to enter the Indian auto market.
Great Wall is looking at locations in three statesGujarat, Tamil Nadu and Maharashtrato build a factory, Mr. Sen said. Great Wall aims to introduce its first vehicle in India during the financial year that starts April 1, 2015, he added. "India has big potential and this is what has attracted China," he said.
Great Wall met with SIAM officials last week, Mr. Sen said.
An executive at Great Wall said the company is working on a plan to enter the Indian market, but declined to elaborate.
Executives at Foton couldn't be reached for comment. The company has set a goal of having an industrial presence in five countries in the world, including India, by 2020, according to its website.
A foray into India will enable Foton and Great Wall tap into a market that is currently in the midst of a slowdown, but is expected to become one of the biggest markets globally by the turn of this decade. The two will face competition from companies such as Tata Motors Ltd.,Volvo AB,Mahindra & Mahindra Ltd.,Hyundai Motor Co and Ford Motor Co.,which already have factories in India.
Sales in Chinathe world's biggest automobile markethave decelerated sharply and are expected to grow between 5% and 8% annually over the next decade, according to JP Morgan. China's automobile sales growth slipped to 2.5% in 2011, the firm said.
Foton produces commercial vehicles including trucks, dumpers and buses. It also manufactures vans and sport-utility vehicles. It has a joint venture with Daimler to make commercial vehicles.
Great Wall, a maker of SUVs and pickup trucks, has an annual production capacity of 800,000 vehicles, according to its website.
Sales of trucks and buses have remained subdued in India this year, mainly because of a slowing economy, high borrowing costs and rising fuel prices. Sales grew a marginal 2.7% from the year earlier in the first eight months of the current fiscal year.
Analysts and auto makers however expect commercial vehicle sales in India to grow faster in the coming years, as the country remains one of the fastest-growing major economies globally, and as it invests to improve its inadequate infrastructure.
SUVs are also gaining popularity in India because of growing affluence of customers and increasing demand for off-road travel. The segment has been largely insulated from the recent slowdown in local vehicle sales, which was caused by higher loan rates and fuel prices.
Local sales of SUVs surged 62% during April to November, compared with a 1.3% gain in car sales.
Mr. Sen of SIAM said the Chinese companies are planning to operate in India through wholly owned units.
Beiqi Foton to Enter Indian Market - WSJ.com
NEW DELHITwo of China's biggest auto makers plan to sell their vehicles in India, a move which will likely allow them to diversify into this potential growth region for automobiles amid slowing sales in their home market.
Beiqi Foton Motor Co. acquired a plot of land in western India's Maharashtra state to build a commercial-vehicle factory, an Indian auto-industry executive said Monday.
Sugato Sen, deputy director-general of the Society of Indian Automobile Manufacturers, said that Chinese auto makerGreat Wall Motors Co. also is considering a plan to enter the Indian auto market.
Great Wall is looking at locations in three statesGujarat, Tamil Nadu and Maharashtrato build a factory, Mr. Sen said. Great Wall aims to introduce its first vehicle in India during the financial year that starts April 1, 2015, he added. "India has big potential and this is what has attracted China," he said.
Great Wall met with SIAM officials last week, Mr. Sen said.
An executive at Great Wall said the company is working on a plan to enter the Indian market, but declined to elaborate.
Executives at Foton couldn't be reached for comment. The company has set a goal of having an industrial presence in five countries in the world, including India, by 2020, according to its website.
A foray into India will enable Foton and Great Wall tap into a market that is currently in the midst of a slowdown, but is expected to become one of the biggest markets globally by the turn of this decade. The two will face competition from companies such as Tata Motors Ltd.,Volvo AB,Mahindra & Mahindra Ltd.,Hyundai Motor Co and Ford Motor Co.,which already have factories in India.
Sales in Chinathe world's biggest automobile markethave decelerated sharply and are expected to grow between 5% and 8% annually over the next decade, according to JP Morgan. China's automobile sales growth slipped to 2.5% in 2011, the firm said.
Foton produces commercial vehicles including trucks, dumpers and buses. It also manufactures vans and sport-utility vehicles. It has a joint venture with Daimler to make commercial vehicles.
Great Wall, a maker of SUVs and pickup trucks, has an annual production capacity of 800,000 vehicles, according to its website.
Sales of trucks and buses have remained subdued in India this year, mainly because of a slowing economy, high borrowing costs and rising fuel prices. Sales grew a marginal 2.7% from the year earlier in the first eight months of the current fiscal year.
Analysts and auto makers however expect commercial vehicle sales in India to grow faster in the coming years, as the country remains one of the fastest-growing major economies globally, and as it invests to improve its inadequate infrastructure.
SUVs are also gaining popularity in India because of growing affluence of customers and increasing demand for off-road travel. The segment has been largely insulated from the recent slowdown in local vehicle sales, which was caused by higher loan rates and fuel prices.
Local sales of SUVs surged 62% during April to November, compared with a 1.3% gain in car sales.
Mr. Sen of SIAM said the Chinese companies are planning to operate in India through wholly owned units.
Beiqi Foton to Enter Indian Market - WSJ.com
:dance:
.....India will say welcome. 
