The Great Wall of China agrees to buy the General Motors plant in India: report
NEW DELHI: Chinese car manufacturer Great Wall Motor agreed to buy General engines ' ( GM ) Automotive plant in Maharashtra, said two sources aware of the matter, implementing their plan to build cars in the country.
Great Wall, one of the largest sellers of sport utility vehicles (SUVs) in China, is expected to pay between $ 250 and $ 300 million to acquire the plant, one of the sources said.
The agreement, which sources said could be announced on Friday, will give a boost to Great Wall's plans to build and sell cars in India and is likely to pave the way for GM Exit of automobile manufacturing in the country.
GM in India he did not immediately respond to a request for comment. The Great Wall was not immediately accessible for comment.
Chinese automakers are accelerating plans to build cars in India to combat the slowdown in home sales and have been encouraged by the initial success of their rival. SAIC Motor In the country, sources have told Reuters.
While car sales in India are stuttering, the market is expected to become the third largest in the world by 2026, behind China and the United States, according to consultancy LMC Automotive.
The Great Wall movement also comes at a time when global car manufacturers like Fiat Chrysler , Ford Motor and GM They are retreating in India after fighting in one of the most competitive markets in the world dominated by smaller, low-cost cars manufactured by Maruti Suzuki and Hyundai Motor.
GM , which stopped selling cars in the domestic market at the end of 2017, already sold one of its two plants to SAIC, where the Chinese automaker manufactures cars under its British brand, MG engine .
The American automaker continued to build small cars to export to countries like Mexico at its second plant in Talegaon, in the state of Maharashtra, which it now agreed to sell.
Great Wall is expected to increase investment as it is updated and modified GM The plant to meet its needs and establish a base for its suppliers, said one of the sources, adding that the automaker expects to start production within a year.
The SUV manufacturer is still finalizing which model it plans to do first in India, including whether it will begin launching with an electric SUV, Reuters reported.
The plant is expected to have an annual production capacity of around 150,000-160,000 vehicles, the source said.