Not suited for local players, West Bengal & Gujarat under consideration by Chinese auto firm

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(added few years ago!)

With local players like Tata Motors faced issues in Bengal, the location is still under consideration along with Gujarat by a renowned Chinese auto major, First Automotive Works (FAW). The firm is not new to India and is already selling auto parts for trucks and buses in a tie-up with Kolkata based company.

If the red dragon automaker plans to set up a manufacturing unit in Kolkata than it will operate as a fully owned Chinese firm and not in alliance with other company, Zhang Lizhong, China’s consul-general in Kolkata said "The automotive group is mulling over to set up manufacturing plant in India and is considering Gujarat and Bengal for it. Land allotment won’t be an issue as FAW’s Indian partner already has land which is sufficient for the project."

"Chinese firms would be cautious and watchful about their future investments in the state. Recently, Dongfang Electric Company Ltd which is among the leading power plant equipment company of China sent its officials to inspect the possibility of entering in the Indian market. Having future prospects of setting up plants in India, Dongfang is presently working on a service center at Rajarhat which is expected to be accomplished in couple of years."

With the Chinese penetration in the country, it would be tough for local players to keep up the margins as these companies are considered to offer things at cheap prices and somewhere compromise on quality parameters also.

Tags : Tata Motors, West Bengal, Gujarat, Kolkata, FAW, First Automotive Works, Chinese, Zhang Lizhong, India, Rajarhat, Dongfang

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(added few years ago!) / 854 views
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