American carmaker General Motors has confirmed that it has dropped the plans to sell its Talegaon plant in India to China’s Great Wall Motor. The deal fell through as the carmaker failed to secure regulatory approvals from the Indian government.
India has had a conservative approach to allowing capital investments from Beijing amid the political tensions between the countries.
The Chinese SUV-maker agreed to a $300-million (Rs 2,342 crore) takeover of GM’s facility in January 2020 with the aim of further investing $1 billion (Rs 7,808 crore) to mark its presence in the country’s growing passenger vehicle (PV) market. The two companies had extended the agreement twice before it expired on Friday.
George Svigos, ED of communications, GM International said, “We have been unable to obtain the required approvals within the time frame of the deal. Our strategy in India remains unchanged and we will now explore further options for the sale of the site.”
He said that the company “hopes to achieve a price that reflects the value of the asset”.
The Chinese automaker confirmed the termination of the deal and said, “Great Wall Motor will keep its attention to the Indian market in the future and continue looking for new opportunities,”
Svigos said that the facility can be used by a number of industries, including non-automotive companies as he affirmed that GM will continue to explore all options.
(With inputs from Reuters)