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Likely to join hands with Delhi-based ICML to launch the car next year.

Chery Automobiles, China’s largest car-maker, is likely to team up with Delhi-based International Cars & Motors Ltd (ICML), makers of Sonalika tractors, to introduce a small car in India next year.

L D Mittal, chairman, ICML, said his company was negotiating with several car manufacturers to introduce the right kind of compact car. He did not deny that Chery was one of them.

“We are planning to launch a premium hatchback in the Rs 3-4 lakh price range, which is the fastest-growing car segment in India,” Mittal told Business Standard.

Chery, with factories in Iran, Russia, Malaysia, Egypt and Pakistan, is keen on a footprint in India in its bid to become a large Asian car-maker. “Chery has a bouquet of small cars that suits the Indian market. It dominates the compact and hatchback segment in China and specialises in the small-car technology currently in demand in India,” a source said.

Industry sources said ICML is planning to manufacture Chery products at competitive prices from its tax-free production facility at Amb in Himachal Pradesh. “The 24 per cent excise break will translate into a major price gain for the ICML-Chery marriage. We are also in constant touch with ICML for any potential ancillary supplies for new products,” a component manufacturer said.

ICML-Chery will be competing for the A2 segment which accounts for 80 per cent of the passenger car market, up from 54 per cent in 2003.

Competition in the segment is growing with Toyota, Honda, Ford and Mitsubishi planning to launch small cars. Currently, Maruti, Tata Motors and Hyundai control about 85 per cent of the 1.38 million small-car market.

Chery is targeting more than one million cars by 2010, of which 40 per cent would be driven by overseas sales.

Most of its cars like Eastar, A5, Cowin, V5, and QQ are in the small and mid-size segments. Automobile experts say its cars are 20-30 per cent cheaper than those made by Maruti, Hyundai, and Tata-Motors.

“We will have the price advantage, but we would not compromise on performance, safety and service. We will bring the best possible technology to cater to the growing car market, which is expected to be over 2 million units by 2010,” Mittal said.

He added that his company’s aim is to enhance its product profile and emerge as a complete automobile manufacturer, beyond tractors and utility vehicles.

To this end, the company would also shortly introduce an SUV “with a state-of-the-art CRDi diesel engine”.

Chery may drive into India with small car

Chery has been building cars for only about a decade now, and their claim to fame has been the blatant (and cheap) copying of the Daewoo Matiz. In typical perception of local Chinese products, Chery cars today are cheap and lacking any resemblance to quality. I dont really expect droves of Indian buyers queing up outside Chery showrooms.

Because not too many can beat the cost advantage that Maruti and Tata enjoy. Thus their quality to price ratio, and inherent value, will be a challenge for Chery (or most others) to match.

That said, it will only be a matter of time before Chinese automakers compete with the best. In the 1960's people used to laugh at Japanese cars. In the 1980's people used to ridicule Korean cars. We all know how that ended up.

everyone knows about the hype of chinese bikes coming to india, most of them even failed homologation.

Current chinese quality is not upto the mark, also ICML failed miserably with rhino.But yes with due course of time, & after trial & error everything is possible. Like ICML did with tractor.

But as of now it will take some moretime for ICML to come as an experienced car maker with a reliable product, but i would like to see an indian company like ICML maturing with time & making quality products.

Wishes for ICML guys, keep trying & deliever us a quality indian product.

Well I don't think it's going to work here, especially if the TATA's new small car comes on time & has the correct price. Chery is going to have to really play the VFM car well to make any sort of effect on the market, not to mention spens tonnes of money on the publicity of its brand & product.

And the Rhino!

Why would anyone want to spend 3-4 lakhs on a copy of a matiz when you can get an actual Matiz(spark) for the same money. ICML really needs to think about this a little more.


Make sure you check this out. Chery QQ Crash Test

That made some interesting reading. If I'm not wrong the car has a non-collapsible Steering Column, don't remember the last new car I had seen which did not feature this safety device. Also seeing how the Steering & Dash twisted, it doesn't speak very highly for the quality of materials.

Indian customers do want cheapers products bt only price wise & not quality wise. We have seen what happened with the chinese bikes (Kanda etc) even at 25k nobody bought it. So its not just the price which lures the Indian public.

IMO what the Indian public looks for is VALUE. Whether the product offers actual value or just perceived value is a different issue, None of the Chery products will do well in India, the Indian consumer is already exposed too to much to settle for something like this. And if it costs 3-4 lakhs....forget it!!!

Absolutely! What you have said is priceless. Chinese cars may be cheap but they dont really offer value. IMHO the Alto, Indica and Santro offer supreme value in the hatchback segment.

This is one entry that I am sure will not happen/will fail quickly if does happen

True. Might as well buy the real thing. I read an interesting thing about the Cherry (not sure if it is true) but the body parts are interchangable with the Matiz.

Bet GM will pull an IP infirngement case out here

I read in a news article 2-3 years back , GM did that in china.

Didnt know about the outcome, perhaps GM lost, as chery is still in production in china, & SAIC is protective about local industry in china.

Dont know about will they do it in india too.

General Motors (GM) filed a lawsuit against China's Chery Automobile Co for alleged piracy of a mini car developed by its South Korean affiliate Daewoo.

The lawsuit, launched in the name of GM Daewoo Auto & Technology Co Ltd, contends Chery's QQ copied the design of Daewoo's Matiz while Chery claims it developed the QQ on its own.

GM's investigation results showed the two vehicles "shared remarkably identical body structure, exterior design, interior design and key components," GM China Group said in a statement on Thursday night.

GM's joint venture with Shanghai Automotive Industry Corp (SAIC) and Wuling Motor Corp in the southern Guangxi Zhuang Autonomous Region began producing the Matiz under licence from Daewoo as the Chevrolet Spark at the end of last year.

Chery, a State-owned car producer formed in eastern Anhui Province, began making the QQ in 2002.

"The Chinese Government advised GM to resolve the issue through mediation or legal means," Ken Wong, general counsel of GM Daewoo, said in the statement.

"Despite our good faith efforts and the assistance of the Chinese Government in the past year, Chery has been non-responsive to mediation efforts, and has even stepped up efforts to export the vehicle to other markets," Wong said.

Chery's alleged infringement has also been impacting the 4,300 empl

GM Sues China s Chery Automobile Co Over Design | Dexigner

cherry dies actually came from the daewoo indian plant .And they also hire the core designers,engineers at daewoo to make the cherry.