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HomeLatest Car NewsGreat Wall Motors Exits Before Entry? | GWM’s Indian Chapter Ends

Great Wall Motors Exits Before Entry? | GWM’s Indian Chapter Ends

After planning to invest Rs. 7,895 Crore in India, Great Wall Motor (GMW) withdraws its operation in the country before even it started. GWM is one of the largest car manufacturers on Chinese soil and had plans to manufacture and sell its vehicles in India as well as overseas. However due to a couple of circumstances the company has withdrawn its plans.

Great Wall Motors | Credits- The Week
Great Wall Motors

Why Great Wall Motors Exited Before Entry

Things fell into slots when General Motor (GM) agreed to sell GWM its production facility in Talegaon, Pune, in January 2020. The Chinese automaker planned to invest USD 1 billion to increase its operations in India and was predicted to earn around USD 300 million.

Haval F5 and F7 spied | Image courtesy: rushlane
Haval F5 and F7 spied | Image courtesy: rushlane

Due to the tension on the Indian border, the contract went awry and the Indian government became more antagonistic to Chinese investment. Finally, due to the rule change in April 2020, GWM was unable to obtain approval for the new Foreign Direct Investments (FDI).

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Later in the timeline, the most recent information indicates that GM also cancelled the sale of the idle Taelgaon Plant to GWM because the contract between the two businesses had already been extended twice and would have expired on June 30, 2022.

Haval Concept H Teased Ahead of Premiere at Auto Expo 2020
Haval Concept H Teased Ahead of Premiere at Auto Expo 2020

Now, instead of investing in India, the company has shifted its focus to Brazil, where the company has invested about USD 2 billion which includes a manufacturing facility.

Great Wall Motors and its Operations

Before calling it off, the GWM had a total of 11 employees. An executive in charge of product planning, two human resource executives, one executive each in after-sales and network, and finance are among the Great Wall India employees who all have been fired. According to sources, three months of severance pay (July to September) and a year of variable pay were given to the employees.

Great Wall Motors | Haval H6
Great Wall Motors | Haval H6

Kaushik Ganguly, the director of product planning and strategy at Great Wall, left the firm in March, while Hardeep Brar, the director of sales and marketing, left in 2021 to join Kia India.

GWM had initially rejected the plan of launching the cars in India as Completly Built-up Units (CBUs) for which the cars would have been expensive. For instance, it was the Haval H6 cross-over that the company was expected to launch as CBU. But being it CBU, the price tag of the vehicle would have been more than Rs. 60 Lakh (ex-showroom). And the company has the idea, that the market is limited for cars at this price point.

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Now there might be no turning back. Let us know in the comment section below, should the company was here, would it have been successful?

Utkarsh Bhardwaj
Utkarsh Bhardwajhttps://gomechanic.in/blog
Technical Content Strategist at GoMechanic | Big Time Petrolhead with the passion for building cars and driving those beauties.

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