This Chinese Auto Company Cancels Rs 8000 Crore Investment In India Because Of Delayed Approvals
Chinese automaker Great Wall Motors (GMW) will no longer go ahead with its proposed $1-billion plan to enter the Indian market after waiting two and a half years for the government’s approval.
Shutting India office
In line with that, it has shut its India office and terminated 8-10 employees with immediate effect on Friday.
The terminated employees were given three months’ salary in severance packages.
They were hired for functions across marketing, network, planning & strategy, service, HR & finance, and production and R&D.
Deal with General Motors
In 2020, GMW, which is China’s largest SUV manufacturer, entered into an agreement with General Motors to acquire the latter’s Talegaon plant near Pune.
It had also participated in the Auto Expo of 2020.
Great Wall Motor is the latest car maker after Changan, Haima and Chery to leave India.
The reason behind closing shop is the failure to scale the regulatory hurdle amid the worsening geopolitical situation between India and China.
A spokesperson said that the company was unable to secure the requisite approvals within the timeframe.
The term sheet for the sale of Talegaon site between GWM and GM expired on June 30, 2022.
Hence, both parties decided to terminate the transaction.
Where to next?
GMW renewed the term sheet with General Motors twice but failed to get government clearance for the deal.
After leaving India, it will shift its focus on Brazil where it recently bought a new production facility and committed $2 billion in investments.
However, it may not be all over yet.
GWM added that it will continue to pay attention to and study the Indian market and seek opportunities to “provide a new experience for Indian consumers with innovative products in the future.”