Great Wall Motors plans to enter the Indian market, once the Chinese SUV manufacturer obtains FDI
approval. Great Wall Motors shall use the GM India's Talegaon facility at Pune as its base that was
acquired by GWM for around INR 950 crore. The Indian Government is looking critically at the
Chinese FDI because of growing anti-China perceptions. It has pledged $1 billion to engage in India.
Great Wall Motors has been reported to have approached Competition Commission of India and
DPIIT for the clearance. If approved, GWM vehicles will be launched in India sometime in the next
year. Although the automobile sector has FDI approval to operate in India, the countries sharing
boundaries must have to obtain permission for entry to the Indian market.
The other Chinese companies will carefully observe the fate of this automaker's approval by FDI.
Over 40 investment proposals from China are reported to be waiting for the authorization of the
Indian Government. Other China's car manufacturers, including Changan, Chery and Haima, will
track the development of the Greater Wall.
If Great Wall Motors gets the approval from FDI, it will be a testing ground for future deals between
India and its bordering countries. India aims to avoid imports from China as of now, given the border
conflicts lately. The Government has adopted new guidelines making it mandatory for appropriate
government approval of participation from border neighbouring countries of India. Great Wall has
become one of the few companies in the National Capital Region to launch four medium-term
vehicles at the Auto Expo in India this year. They had also articulated their intent to compete in the
market place for the sub-Rs 10 lakh and to oppose, except perhaps hybrid vehicles, such as Maruti
Suzuki, Hyundai Motor and M&M.
