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Great Wall Motors awaiting Centre's nod to enter India: Report

Other Chinese automakers including Changan, Chery and Haima, will be keeping an eye on the India government's decision on Great Wall Motors

August 19, 2020 / 02:48 PM IST

Chinese automaker Great Wall Motors is awaiting the green signal of the Indian government for its foreign direct investment (FDI) proposal in the country.

Great Wall Motors had sought approval from the Department for Promotion of Industry and Internal Trade (DPIIT) and the Competition Commission of India (CCI) before its plan to launch vehicles in India in 2021, according to a report by The Economic Times.

Also Read: China's Great Wall Motors gearing up to make a big-bang entry with this strategy

"The proposal has (also) to be vetted by the Ministry of Home Affairs for security clearance," a government official told the publication. There are 40 proposals related to Chinese investment that requires a security clearance, the report said.

Moneycontrol could not independently verify the story.

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Great Wall Motors had not yet responded when contacted by The Economic Times.

In January, Great Wall Motors had purchased General Motors' Talegaon factory for Rs 950 crore, which was a part of its plan to invest $1 billion in India.

General Motors had intended to close production at the factory in November, which has been delayed.

"We continue to work towards the end of production and deal close," a General Motors spokesperson told the paper.

Other Chinese automakers including Changan, Chery and Haima, will be keeping an eye on the India government's decision on Great Wall Motors, sources told the paper.

Investments from China have come under increased scrutiny amid border tensions along the Line of Actual Control (LAC), and a push to lower India's dependence on Chinese imports.  India had in April revised the norms, allowing FDI from companies in neighbouring countries through the approval route only.

There has also been an informal call in India to boycott Chinese products. The Centre had on June 29 banned 59 Chinese apps, which included popular short-video platform TikTok.
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first published: Aug 19, 2020 02:48 pm
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