Chinese automaker, Great Wall Motor has recently announced its $1 billion-dollar investment plan in the Indian market. The move is anticipated to accelerate Great Wall Motor's global expansion in a time when both, China's economy and automobile industry, undergo their steepest declines in decades.
The investment seeks to increase the Chinese automaker’s global presence to about 60 nations. The company looks to establish two brands in India – Haval and GWM EV. While the former will cater to all types of SUVs, the EV brand will house non-SUV electric vehicles.
The company has signed a term sheet with US' General Motors to acquire its manufacturing plant in Talegaon near Pune following the latter's exit from India. The transaction for the 137,000-unit annual capacity plant is expected to be closed in the latter half of this year. The acquisition of an existing plant will ensure that the new entrant will have a locally-made product in the market as early as next year, the company said.
“You can't get products to the market any faster,” said Hardeep Brar, director of sales and marketing at the company's Indian arm.
Great Wall will also bring to India its critical parts supply-base – an expense part of the billion-dollar investment. It is also looking to source locally and had scheduled a vendor meet with senior officials from China, but the meeting had to be cancelled following the travel ban on people from China due to coronavirus. The company however, had a meeting with potential dealer partners on Wednesday to showcase products.