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Chery?s Small Cars Will Soon Hit The Roads In India
May 07, 2007

Chery is all set to make an entry in India with its small cars. The Chinese automobile giant will work in collaboration with a Delhi based manufacturer, ICML.

According to the news published in Business Standard, China biggest carmaker, Chery Automobiles is working in collaboration with Delhi-based ICML (International Cars & Motors Ltd), Sonalika tractors’s manufacturer, to come up with small cars in India year after.

To make their presence felt in a big Asian market, Chery is now going to have a team in India, exactly the same way they are operating in countries like Iran, Malaysia, Egypt, Russia, and Pakistan.

It is worth mentioning in this regard that Chery has a wide array of small cars suitable for Indian market. As Cherry is dominating China’s hatchback and compact market and has expertise in small-car technology. And in India, small cars are presently in demand.

According to experts, CML-Chery will vie for A2-segment which in general makes up 80 per cent of passenger-car market, a 54 per cent up from 2003.  Competition in this segment is rising with big wigs like Honda, Ford, Toyota, and Mitsubishi all set to introduce small cars. At the present juncture, Tata Motors, Hyundai, and Maruti control almost 85 per cent of 1.38 million market for small-car.

Statistic wise, Indian passenger car sales for the year 2006 were 1,099,712 units in comparison of 920,239 units in 2005. The increase in demand of passenger cars was mainly due to the launch of new models, sales incentives given by manufactures, and the variant coupled with number of low cost finance schemes.

As per a research analyst at
RNCOS, “In last few years or so, India has witnessed increasing number of international players entering into the fray through Joint ventures. There is no doubt that sudden interest showed by key players of world has made auto industry in India highly competitive in nature as India offers twin advantages of low-cost manufacturing base and ready market.”

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