Great Wall Motor plans to re-allocate a portion of its $1 billion investment in India to Brazil. This step has been taken due to the year-long delay faced by the Chinese automaker in winning the government approvals. Talking about the reallocation that could range up to $300 million, the maker of popular SUVs and pick-ups was close enough to acquire a former Daimler plant in Brazil to build cars.
The Chinese automaker was all set to begin selling India-made Haval brand SUVs in the country. However, the delays from the Indian government have forced the GWM to take a more measured approach. It might consider entering the market with a fully-built imported vehicle before commencing domestic production. India was supposed to clear about 45 of the investment proposals mainly in manufacturing from China earlier this year. However, the Indian officials delayed it stating that until the de-escalation at the border is not complete, they will not be returning to their usual business. Great Wall Motor, on the other hand, wishes to wait for the ties between the two nations to improve and the Covid’19 pandemic to ease up in India before speeding up its plan for the market.
Talking about Great Wall Motor, it basically believes that India is a key market to establish its plant. It still wants to manufacture cars in India and is now building its supply chain. As of now, the Chinese automaker manufactures its cars in Russia and Thailand where it acquired a plant at the time it announced its India plans. The automaker is also focusing on Brazil where it plans to build its Haval brand of SUVs for domestic sale and export. Great Wall Motor sold 1.1 million cars last year, mainly in China. It is now eyeing to expand in Asian, European, and Latin American markets.
Source: Reuters
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