Sonalika Tractors set to drive into China this year
New Delhi: Sonalika International Tractors Ltd (ITL) plans to enter the Chinese market in 2018 as it looks to expand market to double overall sales to 2 lakh units annually in the next five years, a top company official said.
The company, which crossed one lakh units sales milestone in 2017-18, is looking at assembling its tractors in China with localisation of certain contents through a local partner.
"We are in the phase of fixing our localisation plant, and fixing how the business will work...Towards the end of this year we should see a physical start in China," Sonalika ITL Executive Director Raman Mittal said.
When asked about the local partner, he declined to comment and said it would be announced at an appropriate time when the company is fully ready with its plans for the Chinese market.
"Finding the right partner was easy and most of the things are done," Mittal said adding the current focus of the company was to get its product right for the new market which it is trying to enter.
"We are in an exploration phase (for product) right now...Since it is our first entry in China it has to be right," he said adding if the product was right, the market held big potential for the company.
China, like India, has huge domestic need and considering the population, demand wouldn't cease in times to come, he said.