Chery Cars China May Join Tata Motors For Indian Joint Venture

Chinese automakers have long been looking to enter India and now with the SAIC's Indian entry imminent, other manufacturers are looking to tap the market too. One of these automakers, Chery Cars has shown recent interest to launch their cars in India through a joint venture with Tata Motors. Why Tata? Well, Chery Automobiles already has a joint venture with the Tata Group, or in particular Jaguar Land Rover in China to sell JLR vehicles through a 50-50 partnership. The partnership, which was formed in 2012 helped Jaguar Land Rover to open their first assembly facility in China in October 2014 based out of Changshu.

Also Read: Details about SAIC's Indian Entry with the MG brand!

According to ET Auto, representatives of Chery Automobiles mentioned that they thought India was a great country with a good heritage and since it already had a partnership with the Tata Group, they would explore a tie-up with Tata Motors to enter the Indian market. That said, the representative went on to add that this wasn't a certainty and that nothing was decided just yet. When asked about talks with the Chinese automaker, a Tata Motors spokesperson said, "Tata Motors standalone business is not engaged in any kind of discussion. We do not have any further information to share at this point of time."

Automakers around the world have slowly and surely moved towards a mutually beneficial partnership and alliances in order to reduce costs on platform, engine and systems development. The likes of the Renault-Nissan-Mitsubishi Alliance is on its way to becoming the worlds largest automaker at the end of this year and the likes of FCA or Volkswagen Group too have had a huge presence in markets around the world due to partnerships. Tata Motors was recently in talks with the Volkswagen Group to develop a new platform which would underpin the future small cars form both brands. Sadly though, due to spiralling costs of the project, the talks were called off recently.