A Chinese manufacturing company, Changan Automobile Company, is investigating opportunities to create a production facility in South India.

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A senior government official said preliminary discussions had been held by the firm in the Guidance Bureau, which manages investment facilitation and Tamil Nadu with business promotion services including State Industries Promotion Corporation of Tamil Nadu for allotment of property.

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The firm has looked at various locations, including Maharashtra and Andhra Pradesh.

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Based on sources, Tamil Nadu is a great competition with the established automobile industry base, including international truck and bus manufacturing companies and six car manufacturers near Chennai, which has emerged one of the top vehicle hubs worldwide. The production companies include BMW, Hyundai, Renault, Nissan, Mitsubishi and Ford and bus and truck manufacturing companies including Daimler and Ashok Leyland have set up shop in the area of Chennai.

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Tamil Nadu has additionally come out for car and vehicle parts investments with a committed policy in 2014.

Based on an industry analyst, the Chinese automaker is targeting to be among the top auto companies by volumes.