Great Wall Motors
New Delhi: Even as India and China are involved in a violent face-off along the Line of Actual Control (LAC) in Ladakh, China’s Great Wall Motors (GWM) has signed a memorandum of understanding (MoU) with the Maharashtra government to pump in $1 billion (about Rs 7,600 crore) in renovating a former General Motors plant and create jobs for 3,000 people in the Pune automotive hub.
The company thanked the state government and said the assistance could turn into a great business opportunity for both the parties. The online conference was attended by China’s ambassador to India Sun Weidong and Maharashtra Chief Minister Uddhav Thackeray.
“This would be a highly automated plant in Talegaon with advanced robotics technology integrated in many of the production processes,” Parker Shi, managing director of GWM India, said in a statement. It is worth mentioning that the Chinese automaker had invested about Rs 1,000 crore earlier this year in acquiring the GM facility in Talegaon on the outskirts Pune.
“Overall we are committed to $1 billion of investment in India in a phased manner. This is directed towards manufacturing world-class, intelligent and premium products, an R&D centre, building a supply chain and providing jobs to over 3,000 people in a phased manner,” Shi added.
Brand experts say Chinese auto companies continue to earn wrath on social media, but in the market, the impact won’t be much because they have deep pockets to face the disruptions. Furthermore, MG Motor, a British brand marketed by SAIC, a Chinese firm, has got an overwhelming response in India with monthly sales exceeding 3,000 units before the coronavirus outbreak.
“It’s becoming a nationalist issue post the ‘Vocal for Local’ call given by the Indian Prime Minister earlier this month. Any Chinese company looking to set up operations will see a delay in decision making,” the chief executive of a leading automaker, on condition of anonymity, told ET earlier this month.