China's top car manufacturer SAIC Motor Corp is planning to enter into the lucrative Indian market, as the company struggles to cope with sluggish demand back home.

SAIC Motor Corp would be the first Chinese car company to enter into the Indian market, which at present is one of the fastest growing auto car markets in the world.

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According to sources, the company is already in talks with State Government of Maharashtra to set up a manufacturing plant in Pune city. The company is reportedly planning to set-up the plant within next three years.

In January, Indian media reported that SAIC Motor Corp is also mulling over the possible acquisition of a plant operated by General Motors in the Indian state of Gujarat. However, no one from the company has so far commented on how far talks with GM have reached over the acquisition.

Sources claim that company is planning to enter into the Russian, European Union and American markets, after setting foot in India later this year.      

It Will be Tough for SAIC to Crack Indian Market

Analysts argue that since SAIC is entering India very late, it would be very difficult for the company to make a dent in the price conscious market. Even global car manufacturers like Volkswagen AG, Ford Motor and General Motors are struggling to drive up their revenue despite being present in India for more than a decade.

Some auto experts also believe that SAIC will have to work hard to overcome strong "negative perception" among Indian consumers about quality of Chinese products.  

"If the Chinese carmakers are able to overcome the quality perception, they have a huge cost advantage," said Amit Kaushik, country head at consultant JATO Dynamics.

SAIC is reportedly planning to overcome all these challenges by offering no frill cars and affordable yet quality SUVs to Indian customers.

TagsSAIC Motor Corp, china, Chinese Car Manufacterer, India, India Car Market