Chinese automaker Chery and Tata Motors exploring partnership

Chinese automobile manufacturers are planning to enter the Indian markets soon. After manufacturers like SIAC, Beiqi Foton confirmed their Indian entry, Chery International is now studying the possibility of entering India. Chery is China’s largest car exporter and has partnered with Tata’s subsidiary – Jaguar Land Rover (JLR).

In India, the manufacturer is planning to enter into a partnership with Tata Motors. Chery is a state-owned company and has sold over 6 million vehicles in its two years of operation. Tata Motors has previously accepted to have discussions with Chery for a possible partnership. The tie-up will explore the use of shared platforms and engines as well.

Chery International was previously in talks to sell its platforms. The company has various platforms namely QQ, A1, and M1 micro sedans and A3 compact vehicle. The previous talks surfaced in 2014 and the Chinese automotive giant planned to sell the products to Tata.

Tata also had an extensive talk with the Volkswagen group to explore the possibility of sharing platforms. The deal later collapsed due to expensive AMP platform of Tata. The Tata group also discussed a partnership with Peugeot Group but the talks have not progressed as of now.

Chery International deal is most likely to fall in place as the chief of the company has said that the evolution of Chinese and the Indian markets has similarities. Which means that the brand can easily get used the Indian conditions and understand the market in a better way.

Tata is currently struggling to keep the entry-level Nano alive. There have been many possibilities of the vehicle going out of production. The Indian brand has been doing decently with their new launches like the Tiago and the Hexa in India. Tata will soon launch the Nexon compact SUV and will enter the sub 4-meter SUV segment for the first time ever.