AutoBeta(AutoBeta.net)06/23 Report--

Great Wall has previously expanded overseas investment to India under plans by domestic automakers to increase overseas investment, but as the border standoff between China and India heats up, according to Reuters, it is said that the Indian government has suspended three investments from China.

In response to the matter, the relevant person in charge of Great Wall said today, "at present, we have not received the relevant information from the Indian government, and we will not comment on the news. We will continue to monitor the progress of the situation."

Indian Industry Minister Subhash Desai previously said that the investment agreements between the three companies and India were signed before the border conflict between China and India, and the Indian Foreign Ministry recommended not to sign any further cooperation agreements with Chinese companies, according to Reuters, citing Indian media reports. Prior to the decision to suspend investment, the Ministry of Industry had had full communication and consultation with other Indian government departments.

The three companies involved include two carmakers, Great Wall and BAIC Foton, as well as a hydraulic equipment manufacturer. Under its previous plan, Great Wall will build plants in Talegaon and Pune, India, with an investment of 3.77 billion rupees (350 million yuan) and plans to hire 2042 employees there.

In addition, BAIC Foton, which is involved in the rumor, plans to build an electric bus manufacturing plant in Talega, a bus company in the northern Indian state of Haryana, with a cumulative investment of 1 billion rupees (about 90 million yuan) and about 1500 jobs for the local market. And Hengli Engineering, a hydraulic equipment manufacturer, built a new factory in Pune, India, with an investment of 250 million rupees (about 23 million yuan). It is reported that the total investment of the three companies' planned projects in India will be as high as 50.2 billion rupees (4.67 billion yuan).

In January, Great Wall also signed an agreement with GM to acquire GM's manufacturing plant in Talega, India. Subsequently, Great Wall also participated in the Indian auto show in February, showing local consumers the best-selling models, including the Harvard H9, F7, F5, etc., and according to the company's product plan, they will launch the first new SUV in India in 2021. At present, the Indian market, as the fourth largest automobile market in the world, has about 50 vehicles per thousand people, which is still in the initial stage of development. In this regard, some organizations believe that with the development of the local market and the release of car demand, it may become the most growing automobile market in the next decade. Cumulative car sales are expected to reach 6 million in 2022, even surpassing Japan to become the third largest car market.

As a result, some of the world's core car brands have increased their investment in the Indian market, including Volkswagen Group, Hyundai Group and so on. Japanese brand Suzuki has also chosen to withdraw from the Chinese market and all its focus has shifted to India. As a result, it has also allowed more and more domestic car companies to expand their investment in India, including Great Wall Motor, SAIC and Haima Motor.

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