Chery and Tata’s fully owned subsidiary Jaguar Land Rover are in joint venture in China.
We informed you earlier that Tata Motors is benchmarking the upcoming Hyundai Creta rival SUV, codenamed Blackbird against the Chinese Chery Tiggo 5x SUV. A new media report claims that the Chinese automaker is in advanced talks with Tata Motors for entering the Indian market through a joint venture.
Speaking to livemint, a source close to the development said, “Senior management of Tata Motors was in China this year and they did visit the facilities of Chery as well,” a person in the know-how of the development has said. Discussions between Chery and Tata Motors for the latter’s India entry are at an advanced level. “A return visit by Chery’s senior executives to India is also on the cards in the next few months.”
For people not in the know, Chery and Tata’s fully owned subsidiary Jaguar Land Rover are in joint venture in China. Under the JV, the Jaguar cars and Land Rover vehicles are manufactured at the Chery JLR’s assembly plant in Changshu. Tata Motors refused to make any comment on the latest development.
Chery was the China’s first automobile brand introduced in 1997. This state-owned brand is currently the largest exporter of passenger vehicles. The company is selling cars in more than 80 countries and regions. The source further claims that the Chinese automakers don’t understand the mindset of Indian customers. It is important for the Chinese automaker to have a local partner to understand the market.
Apart from the Chery, Beiqi Foton, Great Wall and Geely are also planning to enter into the Indian market. SAIC Motors has already introduced its British brand – MG Motors in India. MG will soon introduce the Hector SUV, which will be followed by 3 more SUVs in the next 1.5 years.