Chinese Auto Firm Will Invest Rs 7500 Cr In Maharashtra; Chinese Bank Gives Rs 5600 Cr Loan
On one side, India and China are involved in a violent face-off along the Line of Actual Control (LAC) in Ladakh, on the other hand, China’s Great Wall Motors (GWM) has signed a memorandum of understanding (MoU) with the Maharashtra government to pump in $1 billion (about Rs 7,600 crore) in renovating a former General Motors plant and create jobs for 3,000 people in the Pune automotive hub.
How Did This Happen?
Further, the company thanked the state government and said the assistance could turn into a great business opportunity for both the parties.
Moreover, the online conference was attended by China’s ambassador to India Sun Weidong and Maharashtra Chief Minister Uddhav Thackeray.
What Does Chinese Automaker Say?
The managing director of GWM India, Parker Shi said, “This would be a highly automated plant in Talegaon with advanced robotics technology integrated in many of the production processes,”.
It is noteworthy here that the Chinese automaker had invested about Rs 1,000 crore earlier this year in acquiring the GM facility in Talegaon on the outskirts of Pune.
Shi added, “Overall we are committed to $1 billion of investment in India in a phased manner. This is directed towards manufacturing world-class, intelligent and premium products, an R&D centre, building a supply chain and providing jobs to over 3,000 people in a phased manner,”.
What Does The Expert Say?
According to the brand experts, Chinese auto companies continue to earn wrath on social media, but in the market, the impact won’t be much because they have deep pockets to face the disruptions.
Moving ahead, MG Motor, a British brand marketed by SAIC, a Chinese firm, has got an overwhelming response in India with monthly sales exceeding 3,000 units before the coronavirus outbreak.
Earlier this month, the chief executive of a leading automaker said, “It’s becoming a nationalist issue post the ‘Vocal for Local’ call given by the Indian Prime Minister earlier this month. Any Chinese company looking to set up operations will see a delay in decision making,”.
In another development, the Asian Infrastructure Investment Bank (AIIB) on Wednesday approved a $750 million loan to India.
AIIB further said in a release that the loan, co-financed with the Asian Development Bank will be aimed at bolstering economic aid for businesses, expanding social safety nets for the needy and strengthening the country’s health care systems.
The release stated, “India is extremely vulnerable to the pandemic given that around 270 million people continue to live below the national poverty line and around 81 million live in densely populated informal settlements with limited access to health services,”.
AIIB’s total sovereign loans to India that have already been approved amount to $3.06 billion, this also includes the recent $500 million COVID-19 emergency response.
So, the current loan will be the second for India under AIIB’s COVID-19 Crisis Recovery Facility (CRF).