Acquisition of GM factory, Great Wall Motors to Enter the Indian Market


On January 17, Great Wall Motors (GWM) and General Motors reached an agreement on the acquisition of GM’s plant in India. According to the letter of intent for investment, GM India, including the plant in Maharashtra, will be transferred to Great Wall Motors and approved by relevant regulatory authorities after the above agreement, GWM will officially enter the Indian market.

Great Wall Motors has long been rumored to enter the Indian market. In December 2019, relevant foreign media had revealed that GWM would enter the Indian market by acquiring GM in the local factory. In February 2019, GWM had already invested in India Subsidiary. In addition, Great Wall Motors was also exposed to have hired former Maruti Suzuki and former SAIC Group India executives as “pioneers” to launch India business. According to the previous Twitter release issued by GWM India, ORA R1, Haval H9, Haval H2 and other models may be introduced into the Indian market first.

Liu Shangxiang, vice president of Great Wall Motors Strategy Dept., said that India has great market potential, rapid economic growth, and good investment environment, entering the Indian market is an important layout of Great Wall Motors global strategy. In addition to the news that it has signed an agreement with GM, Great Wall Motors said that it will officially bring the Haval brand and the Ora brand to the Indian International Auto Show in Delhi, and announce the Indian market strategy.

In fact, Chinese car companies have set a precedent for the Indian market. As early as 2017, SAIC Group invested 3.275 billion yuan to acquire and transform GM’s HALOL plant in Gujarat to enter the Indian market. In June 2019, SAIC Group launched the first model of the Hector in the Indian market and achieved good order and delivery data. In addition to SAIC, Chery, Changan and other Chinese auto brands are also eyeing the Indian market.