JAC Plans to Launch Medium Heavy Trucks in India

www.chinatrucks.com:Anhui Jianghuai Automobile Company, plans to launch passenger cars and medium to heavy trucks in India as demand wilts in a slowing home market.

The company, also known as JAC, has sent its top executives to India in recent months to firm up its debut plans and to identify the location where it can set up a plant to assemble completely knocked down (CKD) kits imported from China, people aware of the development said. JAC is the third Chinese automaker after Beiqi Foton and Great Wall Motors to plan a foray in the domestic market.

"JAC is looking at leveraging its strength as the biggest chassis manufacturer of China to develop a host of applications for the diverse Indian market," a person aware of the company's plan said quoting Jina Kang, JAC's top representative in India. An email to Jina Kang seeking information of the company's plans for India did not elicit a response.

Based in Anhui province of China, state-run JAC is ranked among the top 10 Chinese automakers. Besides its cars and heavy duty trucks, the company is known for its small components and engines. Operating for more than 40 years, JAC has an annual vehicle production capacity of over 700,000 units. It also runs a 500,000 engines-a-year plant in China.

Chinese automakers are increasingly focusing on India as the market here offers advantages of similar products range at affordable prices.

Earlier, state-owned Beiqi Foton had announced that it is setting up a commercial vehicles facility at Khed near Pune in Maharashtra with a cumulative investment of .`1,676 crore. Another Chinese automaker, Great Wall Motors, is said to be close to finalising the India debut of its sports utility vehicle, Haval H5.

Like in India, auto sales in China— the world's biggest automobile market—have decelerated sharply in recent months. Analysts say the Chinese market is expected to grow between 5% and 8% annually over the next decade.

According to China Association of Automobile Manufacturers, Chinese vehicle brands accounted for 38.41% of the total volume (passenger vehicles) sold in the country in January, down 4.35% from the previous month.

Indian auto market has been slowing with demand declining for more than a year. The commercial vehicles segment has seen a higher decline and has slipped for the past nine-straight months, but analysts tracking the industry say the immense potential in the domestic market is attracting Chinese players.

"China's commercial vehicle market has already touched the maturity stage and we see a stabilisation kind of situation with negligible or no growth in next 4-5 years time frame," said Amit Kaushik, principal analyst (auto) at IHS Automotive, a global consultancy.

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