A senior government official told the news website that Changan has held preliminary talks in Tamil Nadu with local industrial development agencies.

Tamil Nadhu, located in southern India, has attracted a thriving international auto industry. Ford, Hyundai, Renault Nissan, Mitsubishi and BMW all have plants near the city of Chennai.

Changan also considered other locations such as Andhra Pradesh and Maharashtra, according to Hindu Business Line.

The website did not offer additional details about the proposed assembly plant, such as likely output, models to be produced or construction schedules.

According to the IHS Automotive's Supplier Business newsletter, SAIC Motor Corp. and Great Wall Motor Co. are considering assembly plants in India. The two companies are negotiating with the Maharashtra state government to build plants in Pune.

Changan, which is based in Chongqing, has joint ventures with Ford, Suzuki and PSA Peugeot Citroen.