Maharashtra Govt Halts Great Wall Motors Indian Investment After India-China Border Clash

• GWM recently signed an MoU with the MH government to set up a manufacturing facility in Talegaon.
• It has plans to invest US$1 billion in the Indian market.

Due to the ongoing crisis at India and China's Line of Actual Control (LAC), the Maharashtra government has freezed the investment of Great Wall Motors. This could potentially delay the Indian innings of the Chinese carmaker, which was expected to begin in 2021. This decision was jointly taken by the Maharashtra government and the Union Ministry.

"The decision has been taken in consultation with the Union government. These were signed prior (Indo-China border tensions). The ministry of external affairs has advised not to sign any further agreements with Chinese companies," said Subash Desai, Minister for Industries and Mining, Maharashtra government.

Earlier this month, GWM had signed an MoU with the Maharashtra government to set up a manufacturing facility in Talegaon. The carmaker has plans to invest around USD 1 billion in the country and has acquired General Motors' old Talegoan plant for the production of its SUVs. It also stated plans to construct a new Randamp;D facility in Bengaluru. With both facilities combined, a total of 3000 job opportunities were projected.

However, now that things are on hold, the carmaker's Indian arrival could be delayed until both countries resolve their issues. Chances are that the Chinese carmaker's arrival in India could be affected if the countries aren't able to resolve the border disputes.

Great Wall Motors made its debut at the Auto Expo 2020 and will be launching its products under the sub-brand.