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Wednesday, February 19, 2020

China’s Great Wall to buy GM’s last India plant

China's biggest SUV maker, GWM will officially debut its Haval brand and electric vehicles at the upcoming Auto Expo and launch its Indian market plan.

By: ENS Economic Bureau | New Delhi | Published: January 18, 2020 1:07:16 am
General Motors to slash 14,700 jobs in North America With the sale of the Talegoan plant, GM’s export operations from India will come to an end three years. (AP Photo/Paul Sancya, File)

Chinese automaker Great Wall Motor will buy General Motors’ (GM) last manufacturing plant India, as the former gears up to enter India with a range of products starting this year.

The manufacturing plant is located at Talegaon, Maharashtra, and a binding term sheet regarding the sale was signed on Thursday, the two companies said. While the companies did not disclose the size of the deal, people close to the development said Great Wall Motor (GWM) will pay close of $250 million for the plant. The transaction is expected to close in the second half of 2020.

With the sale of the Talegoan plant, GM’s export operations from India will come to an end three years after the American car maker exited the domestic market. In 2017, GM had sold its first plant in Halol, Gujarat, to SAIC Motor, which owns the British brand MG Motor. Currently, MG manufactures the SUV Hector from the Halol plant. The Talegaon plant had a capacity of 165,000 vehicles per annum along with manufacturing 160,000 engine units.

China’s biggest SUV maker, GWM will officially debut its Haval brand and electric vehicles at the upcoming Auto Expo and launch its Indian market plan. Buoyed by the success of MG Motor, many Chinese automakers are looking at entering India to combat slowing sales at the home market. FE

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