Chinese companies are known in the Indian market for selling a wide range of products from toys to electronics, telecom and lifestyle products. Adding to that will be a major debut of SAIC Motors, one of the largest Chinese automobile manufacturer company is ready to gear up on Indian roads.
According to sources, the company SAIC Motors has started hiring executives to foray market plans in India. MG Motor India will be the local unit of SAIC Motors and will sell with an “MG” tag which is a British firm acquired by a Chinese firm named Nanjing Automobile. It is said that Rajeev Chhaba, former head of General Motors India is the managing director of SAIC Motors India. Seven more people have been hired to lead and manage finance, HR, IT, marketing and other functions.
SAIC had made an effort to enter India as earlier in 2010, allied with General Motors. The plan was to introduce five Chinese models, including a small car, a sedan, and light trucks. But the project was eventually held off. But SAIC has now come up with a concrete plan and Chhaba’s experience in both Indian and Chinese markets will prove to be very helpful.
SAIC Motors now possesses the Competition Commission of India’s permit to acquire General Motors’ manufacturing unit at Halol in Gujarat. But the final deal is the settlement of labours at the plant. Once it is resolved, SAIC is ready to take over the unit in April and introduce its new vehicle on Indian roads by late next year or early 2019.
Though Chinese products sell like hot chocolate cakes in the Indian market, the buyers are quite jittery about the quality when it comes to the automobile. However, if they succeed in convincing customers about quality, the low-cost factor would play a humongous role in the market.