GM calls off India plant sale to Great WallReuters, NEW DELHI and SHANGHAIGeneral Motors (GM) yesterday said it had called off the sale of a shuttered Indian plant to China’s Great Wall Motor Ltd (長城汽車) after they failed to obtain regulatory approvals, amid a tougher stance by New Delhi toward investments from Beijing. GM struck a deal in January 2020 to sell the plant to Great Wall, with the Chinese SUV maker expected to pay up to US$300 million as part of a broader plan to invest US$1 billion to establish a presence in India’s growing auto market. This was part of a broader crackdown by India on businesses with Chinese links amid worsening diplomatic relations. This will also send Great Wall back to the drawing board on its plans to enter India, which it considered an important part of its global strategy to break into new markets like Latin America, Thailand and Brazil. Last year, Great Wall reallocated to Brazil a portion of its US$1 billion investment earmarked for India and reassigned some of its staff after delays in winning government approvals.

Source: Taipei Times July 01, 2022 17:04 UTC