Chinese automaker Changan is considering the Indian state of Tamil Nadu to set up a manufacturing plant, according to a report by the Hindu Business Line that cited an unnamed senior government official. The report added that the automaker has been in talks with various industry promotion agencies such as State Industries Promotion Corporation of Tamil Nadu for allocation of land and the Guidance Bureau, which handles investment facilitation.
Significance: Changan is one of the biggest state-owned automakers in China and has joint ventures (JVs) with Ford, Suzuki and Groupe PSA. In 2015, the automaker produced 1.29 million vehicles, around 5.4% of the total vehicles produced in the China, according to IHS Automotive data. Changan is one of the Chinese automakers that are looking to enter new markets including India. Earlier this year, it was reported that Chinese automakers SAIC and Great Wall are considering assembly investments in India. The two companies are in talks with the Maharashtra state government to set up production facilities in Pune . Changan's intentions to set up a manufacturing plant in India were first revealed in November 2014, when its executives were in the country as part of a study.
