The aftermath of the COVID-19 pandemic was inevitable. While existing automakers in India are suffering huge losses, newcomers like Great Wall Motors are rethinking their timeline for entering the market as well as the investment among other strategic decisions for the same.
On 17 January 2020, GWM signed an agreement with GM to acquire its Talegaon factory located in the State of Maharashtra. The acquisition of this plant will lay a major foundation for the company’s entry in India. It was scheduled to be completed in the second half of 2020. However, an industry source has told Telegraph India that the company “might just have to abandon its India plans.”
Towards the end of last month, the Indian government tightened the restrictions on Chinese investment indirectly with the below revised FDI policy:
A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route.
When the source publication reached out for a comment about the matter, GWM said that it is “still studying the order and what it implies.” The revised FDI policy is aimed at curbing opportunistic takeovers/acquisitions of Indian companies due to the ongoing pandemic. GWM intends to make SUV and EV models at GM’s Talegaon plant after taking it over. The company was expected to launch a Haval SUV as its first model in India in 2021.
Also Read: At least 5 Haval SUVs priced up to INR 50 lakh planned for India
Stay tuned to IndianAutosBlog.com for the latest Haval updates and other four-wheeler news.
[Source: telegraphindia.com]
