$5 Billion India Investment Plans Of Chinese Auto Firms Remain Stalled
The delay is due to the border tensions between the two countries and India's stance against Chinese investment.
India investment plans of Chinese Auto firms’ plans might have to be further deferred due to the ongoing border tensions between the two of the most populous nations in the world.
The total investment, estimated to be worth about $5 billion (Rs. 37,053 crores), plans face delays of two years or more as negotiations have been put on hold at present.
Great Wall Motors (GWM), Haima Automobiles, Changan Auto and Chery are all awaiting the Indian government’s next move and the waiting period will depend on the government’s stance.
This means GWM’s takeover of the Talegaon plant of General Motors will be delayed even further, while its vendor Nobo Automotive, has not held any discussions with its proposed local partner for months.
GWM has not changed its plan to invest $1 billion (Rs. 7400 crores) in India, but people in the know have stated that it might consider scrapping the idea if it does not hear from the government soon.
The launch of the Haval brand might be pushed to 2022 and the discussions held by Changan Automobile seeking land for a greenfield facility is going slow, meaning the project may not see the light of day before 2023-2024.
Bird Electric Mobility on the other hand has stated that clarity on its project with Haima Automobiles for making small electric will emerge only by the spring of next year. Its aims to make its EV1 electric car in India with maximum localisation.
That is not all, even MG Motor India is exploring contract manufacturing to meet increased demand instead of setting up a new plant of its own.
Automakers are now looking toward the GWM project so as to know the government’s stance on Chinese auto firms’ India investment that will undoubtedly bring in huge sums of FDI.
Source – EconomicTimes.IndiaTimes.com