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Great Wall Motors cancels plans to launch cars in India

Written by Nizam Shaikh

Back in 2020, a new Chinese player showcased its products at the 15th edition of the Auto Expo in Delhi. The largest motor show in the country took place in Delhi before the outbreak of COVID-19 in India. Great Wall Motors, abbreviated as “GWM”, was also planning to enter the Indian market with a large USD 1 Billion (~INR 7000 Crore) investment.

Great Wall Motors – India Plans

In January 2020, GWM planned to acquire the General Motors (GM) production plant in Talegaon, Pune. GM had winded down its operation in the Indian market back in 2017. At the Auto Expo 2020 in February, the Chinese SUV-maker showcased a strong portfolio and also announced that the brand plans to begin manufacturing operations as soon as 2021. In addition to this, the brand also planned to install Vehicle R&D centres, manufacturing plants, electric drives and power battery manufacturing in India. This would also generate around 3,000 employment opportunities in a phased manner.

India China Conflict and FDI

GWM had its plans laid out for India and also started inducting Indian employees. However, in April 2020, the Indian Government introduced new FDI regulations. According to this, Foreign Direct Investment would have to go through extra scrutiny thanks to the Indo-China conflict in the Galwan valley. The People’s Liberation Army also martyred several Indian soldiers, which led to anti-Chinese sentiments throughout the country. Therefore the brand’s plan to enter the Indian market was delayed from 2020 to 2022.

GWM Cancels Plan to Launch Cars in India

A recent media report suggests that the brand has dismissed all of its 11 Indian employees working in different departments. Reports also suggest that GWM did not offer employees an alternative to work or relocate. This leads us to believe that the company has wrapped up its business in the Indian market for good. However, according to sources, all the employees were paid three months’ salary in advance from July to September along with variable pay for 6 months.

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