Great Wall Motor in talks to enter India - SIAM official

MUMBAI/NEW DELHI Mon Dec 10, 2012 8:42pm IST

Portugal's Carlos Sousa and co-pilot Jean-Pierre Garcin of France drive their Great Wall during the fifth stage of the fourth South American edition of the Dakar Rally 2012 from Chilecito to Fiambala January 5, 2012. REUTERS/Jacky Naegelen/Files

Portugal's Carlos Sousa and co-pilot Jean-Pierre Garcin of France drive their Great Wall during the fifth stage of the fourth South American edition of the Dakar Rally 2012 from Chilecito to Fiambala January 5, 2012.

Credit: Reuters/Jacky Naegelen/Files

Stocks

   

MUMBAI/NEW DELHI (Reuters) - Great Wall Motor Co (601633.SS) is in talks to open a plant in India, a move that would make it the first Chinese carmaker to operate in the country without a partner.

"They are meeting industry. They are meeting government. They are meeting suppliers," Vishnu Mathur, director general of the Society of Indian Automobile Manufacturers - a lobby group, told Reuters in an interview on Monday.

Great Wall (2333.HK), which sells its sport-utility vehicles and pick-up trucks in other emerging markets such as Russia and South Africa, is not yet present in India's booming SUV market, one of a few bright spots in the local automotive industry.

China's eighth-largest car maker, which sent a delegation to India last week, is targeting 2016 to start manufacturing in India, Mathur said, adding Great Wall executives met SIAM representatives last week.

Great Wall was not available to comment.

Passenger utility vehicle sales, helped by subsidies on diesel fuel, rose 62 percent in the April-November period, while car sales rose 1.3 percent.

New entrants will compete with market leader Mahindra and Mahindra (MAHM.NS) and Tata Motors (TAMO.NS). Also, Italian carmaker Fiat FIA.MI said last week it would launch Jeep, an SUV brand controlled by U.S. subsidiary Chrysler, in late 2013.

While India has attracted billions of dollars investment from overseas manufacturers, such as Ford (F.N), General Motors (GM.N) and Toyota (7203.T), Chinese carmakers have yet to make significant inroads.

Chinese group SAIC Motor Corp (600104.SS) cut its stake in GM's Indian operations to 9 percent in October, from 50 percent.

A slowdown in India's car market over the past 18 months has raised fears of overcapacity, with sales expected to grow 1-3 percent in the financial year that ends in March.

Great Wall, China's largest car maker without a foreign partner, aims to more than double annual sales by 2015 by targeting more overseas markets, its chairman said last month.

(Additional reporting by Fang Yan in BEIJING; Editing by Dan Lalor)

Reuters Showcase

GDP Growth

GDP Growth

India revises up 2013/14 GDP growth to 6.9 percent.  Full Article 

Pharma Deal

Pharma Deal

Sun Pharmaceutical wins U.S. approval to buy Ranbaxy  Full Article 

Adani Restructuring

Adani Restructuring

Adani hives off power, ports businesses to boost growth.  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage