China’s Great Wall buys GM India plant for USD300 mil

China’s Great Wall buys GM India plant for USD300 mil

Ending General Motors’ (GM) involvement in car manufacturing in India is the sale of its plant in Talegaon in Maharashtra state to China’s Great Wall Motor. The deal, said to be worth between USD 250 million to USD 300 million (RM1.02 billion to RM1.22 billion), will allow Great Wall to enter the expanding Indian market for medium cost vehicles.

With negotiations expected to be completed in the second half of 2020, Great Wall intends to market the Haval SUV brand and electric vehicles in India reports Reuters. Plans for Great Wall’s entry into India will be announced in February at the Delhi Auto Show.

“The Indian market has great potential, rapid economic growth and a good investment environment. Entering the Indian market is an important step for Great Wall Motors’ global strategy,” said Great Wall’s vice president for global strategy, Liu Xiangshang.

China’s Great Wall buys GM India plant for USD300 mil

Slowing sales growth in the China domestic market has prompted not only Great Wall, but also rival SAIC which builds cars under the British brand MG Motor, to explore overseas options for vehicle manufacturing and sales. GM had earlier ceased retail operations in India, with operations ending in 2017 after the sale of its other India plant to SAIC.

The Talegaon plant was utilised for small quantity manufacturing by GM for export with GM “exploring strategic options” for the site as part of its global strategy, said Julian Blissett, senior vice president, GM International Operations. With a capacity of 150,000 to 160,000 vehicles a year, Great Wall is expected to upgrade and modify the plant as well as set up a base for suppliers with production beginning within a year.

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Mohan K Ramanujam

Coming with diverse and extensive experience in heavy engineering, Mohan enjoys making anything with wheels go fast, especially motorcycles. His weapon of choice is the Desmoquattro engine, and he has a penchant for anything with a dash of Italian design. Strangely enough, he insists he's a slow rider.

 

Comments

  • Habislah! India dah jual to China. Hahahahaha

    Like or Dislike: Thumb up 8 Thumb down 0
    • Karam Singh on Jan 29, 2020 at 12:26 pm

      So, will the Chinese learnt Indian Hindi/Television/Malayalee/Tamil languages in order to set their foot stronger there?

      Or the Indians will initiate learning to speak Mandarin instead?

      Tata could have exploit it’s local market better and stronger, together with Maruti. Protect yournown backyard.

      What I mean is – will the Chinese buy Indian made cars in China? Personally speaking – unlikely.

      Like or Dislike: Thumb up 1 Thumb down 0
      • Protect their own backyard? They won’t because they don’t have a Bapa Kereta Nasional Lagi Sekali. Maybe if we export him back, they will have one and he can then help protect their own backyard.

        Like or Dislike: Thumb up 3 Thumb down 0
  • Ex VGM staff on Jan 29, 2020 at 12:22 pm

    2 words : silk road

    Like or Dislike: Thumb up 0 Thumb down 0
  • Mohan Nair on Feb 13, 2020 at 6:09 pm

    And Commie Chinese support Pakistan!

    Like or Dislike: Thumb up 1 Thumb down 0
 

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