China's Great Wall Motors hopeful of hearing soon from India on clearances

Chinese auto major Great Wall Motors, which had announced USD 1 billion investment in India earlier this year, is hopeful of hearing soon from the Indian government on clearances for its proposals, including acquisition of General Motors' factory in Talegaon, according to a company official.

In January this year, Great Wall Motors (GWM) agreed to buy General Motors' (GM) Talegaon manufacturing facility in Maharashtra, subject to requisite government and regulatory approvals.

The transaction was expected to close in the second half of 2020.

Later at the Auto Expo in February, GWM announced investment of USD 1 billion (about Rs 7,100 crore) in India in a phased manner in areas including research and development, manufacturing, and sales and marketing. It included acquisition of GM's Talegaon plant.

While the company was hopeful of getting the regulatory nod, some recent reports said the Maharashtra government, in consultation with the Centre, has put on hold three major investments by Chinese companies, including that of GWM, in the state in the wake of Indo-China border clashes.

As the border tension escalated, India banned 224 mobile apps with links to China, including the hugely popular TikTok, UC Browser, Baidu, Baidu Express Edition, Alipay, Tencent Watchlist, saying they were prejudicial to the sovereignty, integrity and security of the country.

"We are hopeful of hearing from the Indian government soon on the investment clearances," a GWM spokesperson said when asked about the progress in the company's India plans, especially the acquisition of GM's plant.

When reached out for comments on the status of sale of the Talegaon plant, a General Motors India spokesperson said, "We continue to work towards the end of production and deal close."

The GM India spokesperson did not comment on whether the original deadline for completing the transaction in the second half of 2020 remains or has been pushed further.

The GWM spokesperson said that being a global company, it is committed "to contribute significantly to the growth of the Indian economy".

"Our plans to be part of the "Make in India" efforts are rapidly going to add to the growth story of the country. We will do this while skilling people, supporting the environment and providing employment opportunities across multiple levels, directly and indirectly.

"We will abide by the laws and rules laid down by the Indian government and we respect all decisions taken during this process," the GWM spokesperson added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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