The list of conditions, which was due to expire in mid-2021, has been extended until December, giving both Great Wall and General Motors more room to close the deal, several people in the know have said.
India’s toughened stance on China’s investments following last year’s border skirmishes in Ladakh and the continuing labor strike at GM’s Talegaon plant in Maharashtra have delayed signing of a deal final.
Chinese auto companies, including parts suppliers, had planned $ 3 billion to $ 5 billion in investment in India by early 2020.
New entry strategy
While a majority of them, including Changan Automobiles, Haima and Chery, either canceled or froze their proposals after the geopolitical environment became tense, Great Wall continued with its plan for India.
Meanwhile, GM India has managed to create a mini-breakthrough with workers at the Talegaon plant, with 30% of workers agreeing to its voluntary departure program. The plant has not been operational since December of last year and GM has offered to sell it without the workers.
GM India has confirmed that the deadline for the list of conditions with Great Wall has been extended, but declined to share the new deadlines. Great Wall did not respond to an email seeking comment until it went to press on Friday. With its entry postponed for over a year, Great Wall changed its entry strategy for India. The plan now is to focus on cleaner technologies – hybrids, electrics and hydrogen fuel cells – and use them as differentiators to establish themselves in this highly competitive market, people familiar with the plans said. ‘business. In a recent interaction with ET, George Svigos, GM’s director of international communications, said the company continues to seek approval for foreign investment.