Chinese 2nd Endeavour:
They came, they saw, but they failed to conquer. And now, they are back again. Nearly half a decade after three Chinese bike makers announced mega strategies to ride into India and aborted plans mid-way, two new motorcycle makers from across the Great Wall are preparing to enter the burgeoning Indian two-wheeler market.
Interestingly, the Chinese new entrants — Guangzhou Motors Company and Zongshen Motorcycle Company — have zeroed in on communist state West Bengal for setting up their assembly plants. Zongshen has formed a joint venture — Mahabharath Motors — with Indonesia-based Salim group and NRI Prasun Mukherjee. Its bikes are expected to hit the roads by the end of 2007. Guangzhou tied up with an Indian infotech company Xenitis and their joint venture is named ‘Global auto’.
Global auto launched its first product the 125cc ‘eXpression’ on April 29th
Not only cheap price tag..
Guangzhou and Zongshen entry marks the second coming of Chinese bikes in India, besides a shift in strategy. The new entrants seem to have learnt from the mistakes of their predecessors. Unlike in the past when the Chinese firms were banking only on cheap price tags, these firms will also use the technology plank to market their bikes in India. In the initial phase, the firms will import the bikes in a semi-knocked down state from China and assemble them in India.
The Major’s JV:
India’s manufacturer Mahindra & Mahindra (M&M) is in talks with two Chinese firms — Lifan and Loncin — to set up parallel ventures, marking its foray into motorcycles. Chinese car maker Chery Automobiles manufacturer of QQ (General Motors sued ‘Chery’ for copying Chevrolet Spark) is likely to partner India’s International Cars & Motors Ltd (ICML) to roll out its small car in India next year. ICML is planning to launch a premium hatchback in the 300,000-400,000 rupees price range, which is the fastest-growing car segment in India. ICML currently offers ‘Rhino’ a Sports Utility Vehicle.
About the Global auto:
Xenitis an indian based infotech company forayed into automotive business by venturing with Chinese fourth largest manufacturer Guangzhou Motors Company, an enterprise of the Chinese Government. The Guangzhou Group has tie-ups with global auto majors like Honda and Toyota of Japan. Xenitis – Guangzhou venture is titled as Globalauto. The assembly line unit of Global Auto is located in West Bengal and is made with an investment of around Rs300 crore. The two-wheeler unit, set up in a 25-acre plot of land, has the capacity to churn out 3.6 lakh two-wheelers annually. Xentis plans to roll out motorcycles and scooters nationally within the next six months. Xenitis has signed an agreement with Indian Oil Corporation (IOC) for setting up automobile service points at 350 IOC retail outlets across West Bengal.
Xenitis ambitious plans…
Soon, Xenitis will launch 100cc, 150cc bikes and gearless scooter. It plans to roll out motorcycles and scooters nationally within the next six months. Xenitis also plans to set up a four-wheeler manufacturing facility in Hooghly in collaboration with Guangzhou Motors. A bus and truck manufacturing facility is also proposed to be set up by 2008.
About the Mahabharath:
Zongshen’s partners Salim group to form Mahabharat motors. The duo has already bought around 70 acres of land near Kolkata for setting up the assembly unit. The firm intends to invest around Rs 1,100 crore to build a plant with a capacity to produce 150,000 motorcycles a year, which would later be hiked to 500,000 units a year. Its maiden product for India is expected to hit the Indian market by the end of 2007. Mahabharath Motors will roll out its bikes under the Arjun brand. For more visit http://www.mahabharatmotors.com/