Great Wall Motors (GWM) and other Chinese entities face a wall in India

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Back in the Auto Expo 2020, Great Wall Motors(GWM) was all getting ready for the big launch in India. They had showcased a variety of products from their international portfolio, which mostly consisted of SUVs. But, with the current border escalations between India and China, GWM and a few other chinese entities are facing a wall on their way to India.

The Maharashtra Government has put investments from chinese entities on-hold. This affected entities include Great Wall Motors, Beiqi Foton Motor and Hengli Engineering. The big decision has come following the advisory from Ministry of Union External Affairs directing not to sign further agreements with Chinese companies.

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Who’s affected and how?

GWM has signed an agreement in January 2020 to acquire GM India’s manufacturing facility in Talegaon. The virtual ceremony was held in presence of James Yang, president and Parker Shi, MD of GWM India. Chinese ambassador Sun Weidong, and Minister of Industries, Government of Maharashtra, Subhash Desai were also present. The plant at Talegaon was supposed to employ about 3000 people in a phased manner. GWM was to invest to a tune of INR 3770 Crore.

During the virtual ceremony, Parker Shi had said, “This would be a highly automated plant in Talegaon with advanced robotics technology integrated into many of the production processes. Overall we are committed to US$ 1 billion investment in India in a phased manner, which is directed towards manufacturing world-class intelligent and premium products, R&D centre, building supply chain and providing jobs to over 3000 people in a phased manner.”

The second major investment was from PMI Mobility Solutions from Haryana with its chinese partner Beiqi Foton. They were to setup a electric bus manufacturing facility in Talegaon worth INR 1,000 crore. The facility would have employed about 1500 people. The third agreement was with a company called Hengli Engineering which intends to invest INR 250 crores to expand its existing facility in Talegaon.

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