The sale of the former GM India plant in Talegaon to Great Wall Motor has been delayed due to a rupture between India and China.
According to Reuters, General Motors is unlikely to obtain Indian government approval to sell the plant to Great Wall Motor of China at this time due to political clashes between the two countries. India has followed new regulations to save Chinese corporations from buying cheap Indian corporations in difficulty amid the COVID-19 pandemic, which may delay the approval procedure for sale. In addition, an ongoing confrontation along the Chinese-Indian border has led to further restrictions on Chinese investment in the Reuters reports that Maharashtra Province suspended the planned sale of GM’s facilities in India.
GM had planned to sell the plant to Great Wall Motors for an estimated $250 million to $300 million, cash it allegedly used to pay debts similar to those left India. The automaker still plans to close the site, regardless of the evolution of India-China relations, however, a source close to the matter told Reuters that it will be “a closed GM site or an operating site with Great Wall” in 2021. Although GM did not sell any cars in India directly after its retirement in 2017, GM India’s plant in Talegaon still produces cars for export.
Great Wall, for its part, also needs the agreement approved. The plant and paints with possible suppliers. Great Wall has said in the past that it would also invest $1 billion in its operations in India, those commitments were made before the COVID-19 pandemic and skirmishes on the Indochina border.
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Damage.
India suffers from Modi’s right-wing government.
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