Great Wall Motors (GWM), set to launch in India during the 2020 Auto Expo in February, has signed an agreement with General Motors for the purchase of GM India’s Talegaon manufacturing facility (subject to requisite government and regulatory approvals). Under a binding term sheet signed yesterday, the GM India legal entity, which includes the Talegaon facility, will transfer to GWM. Global Strategy Vice President, GWM, Liu Xiangshang says that this transaction would underpin the company’s plan to enter and invest in India.
Great Wall Motors will officially debut with its Haval brand and the Ora EV at the Delhi International Auto Show, along with which it will announce its market plan for India.
Great Wall Motors is expected to display four SUVs under its Haval brand at the 2020 Auto Expo – H2, H4, H6 and H9. The Haval H6 SUV has already been snapped testing on Indian roads a few weeks back. If launched here, the SUV will go up against the likes of Tata Harrier, MG Hector, Jeep Compass and Mahindra XUV500 in the segment.
“It is also an important measure to respond positively to the Indian government’s national strategy of vigorously advocating Make In India, Digital India and a ‘strong focus on clean energy in India’ and building a new India vision,” Liu said.
“Great Wall Motors’ investment will create more jobs, including direct and indirect employment, further enhancing the skill level in the auto industry; promote the development of the local supply chain, R&D and related industries, and contribute more profits and taxes to the government of India and the government of Maharashtra.”
GM will provide a separation package and transition support for impacted employees, as well as an orderly transition for partners. The transaction is expected to close in the second half of 2020. Chevrolet will continue to honour all warranties and provide aftersales support, including ongoing service and parts requirements for existing customers in India.
GM International Operations Senior Vice President Julian Blissett said the Talegaon manufacturing facility had delivered vehicles for both domestic and export markets. He thanked employees and partners for their work over many years.
Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.