Great Wall Motors showcased their car line-up in February 2020 at the 15th edition of the Auto Expo 2020 in New Delhi but since the rise of tensions at the Indo-Chinese border where around 20 Indian Army soldiers were martyred by the People’s Liberation Army (Chinese Army). India retaliated by placing a ban on Chinese mobile phone applications that could be sensitive from the security point of view and also tightened the FDI (Foreign Direct Investment) route for Chinese companies.
The Chinese Situation
Long before the engagement with Chinese soldiers Great wall Motors had signed an MoU with the Government of Maharashtra under which the brand plans to acquire the General Motors’ state-of-the-art manufacturing facility in Talegaon near Pune. The change of the FDI rules meant that all Chinese investments must go through a stricter Government route instead of seeking just the approval of the CCI (Competition Commission of India) and by notifying the RBI (Reserve Bank of India). But after the tensions at the border, the Government of Maharashtra halted all negotiations between GWM and General Motors as anti-China sentiments rose in the country.
As Chinese troops withdraw and dismantle structures from the Line of Actual Control (LAC) – the de facto border, between India and China the disengagement has led to new negotiations where reports believe that the Government of India may be revising plans to allow the Chinese investors back in the country. The report says that the manufacturing sector may not pose any threat to security. The Government’s change in the stance only came after the disengagement announcement was made on Sunday. Reports suggest that both GWM (Great Wall Motors) which plans to invest around USD 1 Billion in the Indian market and SAIC, the Chinese state-owned vehicle manufacturer which is the parent company of Morris Garages (MG Motor India) will plan further expansions in India.