Chery Automobiles might launch a small car in India

Chery Automobiles might launch a small car in India

India might soon get its first Chinese car. China’s largest automaker Chery Automobiles is rumored to be considering entering the Indian market with a small car.

The company could get into a partnership with Delhi-based International Cars & Motors Ltd (ICML) which manufactures the Sonalika range of tractor products in the Indian market.

L D Mittal, chairman, ICML has admitted that they are currently talking with several potential automakers to launch an automobile in India.

He said: “We are planning to launch a premium hatchback in the Rs 3-4 lakh price range, which is the fastest-growing car segment in India.”

Chery Automobiles already has a presence in Iran, Russia, Malaysia, Egypt and Pakistan and it seems to be now looking at India as it is currently one of the most lucrative auto markets in the world.

A market source added: “Chery has a bouquet of small cars that suits the Indian market. It dominates the compact and hatchback segment in China and specializes in the small-car technology currently in demand in India.”

Another market source stated that ICML might manufacture this car from its tax-free production facility at Amb in Himachal Pradesh. This would enable them to launch this new car at competitive prices.

Market experts believe that Chery has the potential to become a real challenger to Maruti which currently dominates the Indian automotive scene. Their manufacturing costs are low and they can introduce products are competitive prices to take on the existing products in the Indian market.

ICML’s Mittal added: “We will have the price advantage, but we would not compromise on performance, safety and service. We will bring the best possible technology to cater to the growing car market, which is expected to be over 2 million units by 2010.”

He added that they are also working on a SUV “with a state-of-the-art CRDi diesel engine”.