Amid the anti-China push in the country, Chinese carmaker Great Wall Motors is awaiting the approval of the government for its foreign direct investment (FDI) proposal. China's largest SUV maker had acquired General Motors' Talegaon factory in January for Rs 950 crore. It was part of Great Wall Motors' $1 billion investment in India's SUV market.
The Chinese company has now approached the Department for Promotion of Industry and Internal Trade (DPIIT) and the Competition Commission of India (CCI) to get a clearance ahead of its plan to launch its vehicles in India. Automobile sector has an automatic approval route, but FDI from China requires government clearance.
The proposal would also be vetted by the Ministry of Home Affairs for security clearance, as mentioned in a report in The Economic Times. Around 40 proposals involving Chinese investments are awaiting clearance, including Changan, Chery and Haima. Great Wall's progress would be significant for these companies that are close to finalising their plans for India.
This development comes after the government introduced new rules that stated that any country that shares land border with India must get clearance for investments in the country -- even for the ones in the automatic route. This rule was introduced after the Galwan Valley clash between Indian and Chinese troops that led to the death of 20 soldiers.
However, as the border issue remains unresolved, these clearances are likely to take time. This would also push the timeline of launches. The launches have already been pushed by a quarter to June 2021. With further delays, it might get moved to 2022, stated the daily.
Great Wall made an appearance at the Auto Expo this year. It is aiming to launch four vehicles in India.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today