Chinese auto makers likely to go for a big investment in Indian Automobile sector

Chinese automobile manufacturers are looking ahead to go for high investments in the domestic auto market following Premier Wen Jiabao's talks with domestic auto majors on his visit to India. According to the sources, besides BYD (Build Your Dreams) Auto which is well renowned for manufacturing electric and hybrid cars, Beiqi Foton one of the leading commercial vehicle manufacturers and other small and mid sized automobile companies are initiating to invest in the domestic auto market. Beiqi Foton, China's largest commercial vehicle manufacturer is also speculated to establish a greenfield facility in India.

As per the Industrial Sources, Foton Motors has analyzed the Indian automobile market scenario for its establishment. Foton Motors have analyzed the prospects in the Indian commercial vehicles industry and has also interacted with component manufacturers in order to derive the supplier units available to manufacture the vehicles in the domestic region. As of now, things are not yet finalized as to whether the company would enter into the domestic auto market as a fully owned unit or as a joint venture.

After Shangai Automotive Industry Corporation(SAIC), Foton is the second Chinese automobile company to enter in the Indian Auto Industry. The Chinese Auto major SAIC deals in India as a joint venture with General Motors and jointly both the automobile units are working to bring in five new models on Indian shores by 2013. The upcoming cars from SAIC joint venture would include two light commercial vehicles of one tonne capacity, two mid sized sedans and larger utility vehicles. In India commercial vehicle segment has gained 41 percent growth between April and November which counted to 4,60,482 units in comparison to 3,26,641 units produced last year. Presently, the commercial vehicle segment is headed by Tata Motors and Mahindra that enjoy 47 percent of the market share.

Foton Motors is a subsidiary unit of Beijing Automobile Group Co. Ltd and is the second largest organization globally, followed by Daimler. Last year Foton Motors sales counted to 6,02,021 vehicles and has exceeded the sales of Mercedes-Benz for the first time since its establishment in 1996.