China’s Changan Automobile seen delaying India entry due to COVID-19: report
NEW DELHI, NNA - Changan Automobile Co., a Chinese manufacturer of SUVs and electric cars, will postpone its entry into India by at least a year due to the disruptions caused by the COVID-19 outbreak, India’s daily business newspaper The Economic Times reported on its website Tuesday.
The company has also put on hold its plan for a partnership with Group Landmark, India’s largest automobile dealership chain, the report said, citing people with knowledge of the situation.
Changan Automobile had been expected to set up separate firms for production and distribution in India. It was ready to invest some 40 billion rupees ($530 million) with a plan to roll out the first product in 2022, according to the report.
Group Landmark operates dealership networks for Honda, Volkswagen, Nissan, FIAT, Ashok Leyland, and Mercedes-Benz.
Changan Automobile may have to look for a local manufacturing partner instead of venturing into the Indian market by itself, as the pandemic affects consumer buying decisions, the report said.