Changan Automobile Not To Set Foot In India, Plan Put On Hold
Rising tensions between the 2 Asian countries and the Centre's tough stance on Chinese investment has worked against the firm's plans.
India entry of Changan Automobile might not happen any time soon as tensions between the 2 most populated nations continue to grow.
The automaker which had plans of investing over $500 million (around Rs. 3640 crores) in the nation and even engaged with a consultancy firm to formulate plans for the market, had only last month shut its Indian office.
Now, its Indian consultant has resigned from the post, while Changan Automobile prematurely terminated its long-term lease as well.
When relations between India and China were not this sour, Changan was scouting for a Greenfield facility in Gujarat, Tamil Nadu and Telangana. It even joined hands with a local partner to take care of distribution.
This would be the third time that Changan Automobile India entry has been aborted. The Chinese firm even tried to tie-up with Ford India a few years ago, but the talks held by both parties led to nothing.
Similarly, the Indian entry of Great Wall Motors is still doubtful, for the government is yet to provide FDI clearance, while General Motors, whose facility the Chinese automaker is set to buy, is struggling to find common ground with the worker’s union.
However, unlike Changan, Great Wall is still hopeful that it can enter India and has stated that it is committed to contributing significantly to the growth of the Indian economy as well as providing employment opportunities directly and indirectly.
Source – ETAuto.com