Great Wall Motors Changes India Launch Plan: GWM To Import Cars Instead Of Making In India

Great Wall Motors' entry into the Indian market has taken a small detour from their initial plans. This change comes as the Government of Maharashtra has frozen all the investments of the Chinese automaker due to ongoing tensions between India and China.

Great Wall Motors Changes India Launch Plan: GWM To Import Cars Instead Of Making In India

Previously, the Chinese automaker had planned a direct entry into the mainstream market with locally-assembled or manufactured cars. However, permissions for further investments have been frozen and delays in FDI approvals have hampered Great Wall Motors' strategy for India.

Great Wall Motors Changes India Launch Plan: GWM To Import Cars Instead Of Making In India

As Great Wall Motors Initial plans to capture the Indian market have crumbled, they have now planned to approach the Indian market through niche segments with the launch of a D-segment SUV and B-segment electric hatchback. Both models will either come in as a CBU or CKD.

Great Wall Motors Changes India Launch Plan: GWM To Import Cars Instead Of Making In India

We expect the upcoming B-segment electric SUV/Hatchback to arrive in India as a CBU model, whereas the D-segment SUV is more likely to be a CKD to keep the costs in check. Great Wall Motors is already on track to implement its new plans as their President of India Operations is already back in India along with a few experts from the production and engineering team.

Great Wall Motors Changes India Launch Plan: GWM To Import Cars Instead Of Making In India

Although Great Wall Motors is positive about getting FDI approval from the Central Government by the end of the second quarter of FY2022, there are few challenges ahead of them and one of them is the ongoing dispute between the workers and General Motors India. This is taking place at the Talegaon facility, which the company acquired from General Motors last year.

Great Wall Motors Changes India Launch Plan: GWM To Import Cars Instead Of Making In India

Meanwhile, Great Wall Motors' mid-size SUV, the Haval H6 is already undergoing homologation at the Automotive Research Association of India (ARAI).

Great Wall Motors Changes India Launch Plan: GWM To Import Cars Instead Of Making In India

Thoughts On Great Wall Motors' Entry In The Indian Market

Despite strong sentiments against China and products/businesses of Chinese origin, and the automobile sales slump, we have witnessed the growth of Chinese owned MG. If Great Wall Motors need a similar level of success, they will need to bring in a strong product with a large enough dealer network.

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Article Published On: Monday, May 3, 2021, 18:02 [IST]
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