After the Coronavirus crisis and Indian Government’s revised rules on Chinese FDI, Great Wall’s entry in India with the Haval brand remains uncertain. It could very well be postponed as of now.
Great Wall Motors and Haval setting up a stall at the 2020 Auto Expo were one of the biggest highlights of this edition of the Auto Expo. The Chinese manufacturer came in with their full range of SUVs to the Expo grounds. However, response around the brand since then have been somewhat dormant. The world was then struck by COVID-19 which threw several car manufacturers out of track and the situation was all the more volatile for new car manufacturers entering the Indian market. Great Wall Motors was certainly to be affected and their entry into the Indian market now stands postponed.
Great Wall Motors were very close to the entering India and were expected to launch their first product in 2021. Earlier this year, GMW even signed an agreement with General motors for the acquisition of their Talegaon factory off Pune. The acquisition of GM’s plant was a major step into the company’s foray in the Indian market. The takeover was scheduled to be completed later this year but the fate of GMW remains uncertain as of now.
The Indian automobile industry is anyway going through a slowdown and the COVID-19 situation was a further burden. The Indian government has also recently tightened the regulation put on place for Chinese investments and that further has worsened the situation for GMW. A spokesperson from Great Wall Motors has said that the company is “still studying the order and what it implies” when asked by a local media outlet about a comment on the above situation.
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The revised regulations on Foreign Direct Investment is meant to curb over-ambitious takeovers of Indian companies in the ongoing circumstances. Great Wall Motors intended to use the Talegaon plat for manufacturing of Haval SUVs and even EVs. In fact, the first product from GMW in India would have been a Haval SUV. GMW did showcase a wide variety of SUVs and concepts at the Auto Expo. These models included the Haval F7, F7x, F5, H9, Concept H and Vision 2025 among several other and the products looked quite promising.
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The Indian automobile industry has already embarked on the road to recovery from the COVID-19 crisis. Manufacturing facilities, dealerships and showrooms, all have started opening up and sales numbers are going up gradually. However, entry for a new brand like GMW still remains quite uncertain. While it very well may stand postponed, it also remains to be seen how the Indian audience reacts to GMW and Haval products after the current crisis.
