Maharashtra Govt Freezes GWM (Great Wall Motors) Investment Amid India-China Tensions

The Chinese carmaker had signed an MoU to set up a manufacturing facility in Talegaon, Maharashtra

• GWM signed an MoU with the Maharashtra government for the Talegaon manufacturing plant just prior to the border clashes.

• The Maharashtra government has now put this investment on hold.

• The decision was taken in consultation with the Union government in the wake of the recent face-off between India and China. 

• Expect GWM to delay the launch of its Haval brand of SUVs in India.

Chinese automaker Great Wall Motors (GWM) recently signed a memorandum of understanding (MoU) with the Maharashtra government for investing in a manufacturing facility worth Rs 3,770 crore in Talegaon. In light of border clashes heightening tensions between India and China, the Maharashtra government has now put all agreements with Chinese companies on hold.

"The decision has been taken in consultation with the Union government. These were signed prior (Indo-China border tensions). The ministry of external affairs has advised not to sign any further agreements with Chinese companies," said Subash Desai, Minister for Industries and Mining, Maharashtra government.

The Talegaon plant along with the brand’s R&D facility in Bengaluru was projected to generate employment for 3,000 people. GWM made its Indian debut at Auto Expo 2020 and was planning to kickstart its operation in 2021 with the launch of the Haval brand of SUVs and GWM EVs. Att he expo, it showcases to Haval SUVs - the Haval F5 and F7 - to take on the likes of the Hyundai Creta and Kia Seltos as well as the Jeep Compass and Tata Harrier.

However, the temporary freeze on its investment plans in India could delay the brand’s arrival beyond 2021. The brand had earmarked a total of US$1 billion for the Indian market. In case both countries are not able to resolve the matter at hand, the Chinese carmaker may not find itself welcome for a lot longer.

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