China’s Great Wall Motors sets up manufacturing unit in India: report
TOKYO, NNA – Major Chinese automaker Great Wall Motors Co. is entering into India, planning to manufacture vehicles locally with a 70 billion rupee ($976 million) investment plan despite an ongoing unprecedented slowdown in the domestic automobile market.
The carmaker established Haval Motor India Pvt. Ltd. before October in Gurugram in the northern state of Haryana, India’s Economic Times quoted a person in the know as reporting Sunday.
Great Wall Motors, which mainly focuses on sport utility vehicle models, is searching for a site to build a plant in at least five states – Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu, according to the report.
“Maharashtra has emerged as the strongest contender, followed by Gujarat,” the report said, citing sources.
On the other hand, the Chinese company has shown interest in taking an existing plant in Talegaon in Gujarat state, which another major Chinese carmaker SAIC Motor Corp. took over from General Motors Co. when the U.S. giant exited from the world’s fourth-largest automobile market in 2017, the local paper said.
Great Wall Motors hopes to speed up the launch of local production rather than building a plant from scratch, according to the report.
Data from the Society of Indian Automobile Manufacturers showed Monday that new vehicle sales in the South Asian country suffered year-on-year declines for 12 straight months to October, as tightened auto loans and insurance premium hikes have continued to dampen consumer sentiment.