Even as tensions between India and China along the border in Ladakh reach record levels, with the first deaths of Indian soldiers in a skirmish with China taking place since 1975, China’s largest SUV-manufacturer, Great Wall Motors, announced a $1 billion investment in building a state-of-the-art plant in Talegaon, Maharashtra, on Tuesday.
GWM signed a Memorandum of Understanding (MoU) with the Maharashtra government in a virtual meeting with Chinese ambassador Sun Weidong, Maharashtra Chief Minister Uddhav Thackeray and GWM President JAmes Yang as well as MD Parker Shi.
GWM said they would make a phased investment of $1 billion at the facility in Talegaon, which the company acquired from General Motors in January. The plant is located in Talegaon Industrial Park, Maharashtra and covers an area of around 300 acres.
The plant is expected to generate employment for over 3,000 people, GWM said. "We would like to thank the Maharashtra government for extending full support and helping us foster a long and mutually beneficial cooperation that hopefully will turn out to be a great business proposition for both," said Parker Shi, GWM India’s Managing Director.
"Overall we are committed to $1 billion of investment in India in a phased manner, which is directed towards manufacturing world class intelligent & premium products, R&D centre, building supply chain and providing jobs to over 3000 people in a phased manner," he said.
GWM is expected to launch its Haval SUV in India in 2021.
GWM’s entry into India comes at a time when the auto sector is still struggling to recover from a downturn that begin in 2019, much prior to the coronavirus pandemic. While the Indian auto market is dominated at the entry-level by Maruti Suzuki and Hyundai, new entrants like MG Motors (also Chinese-owned) have seen reasonable success.
