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General Motors will not sell a factory in India to Great Wall Motor for $300 million as originally planned.
In January 2020, GM reached an agreement with Great Wall Motor to sell the plant. The Chinese car manufacturer was set to spend $300 million on it as part of a broader $1 billion investment to establish a significant presence in India. The two automakers had been waiting for the Indian government to approve the deal but on June 30, the deadline came and went, meaning General Motors will now explore other options.
India has toughened its stance on Chinese investments since a military clash between the two countries in June 2020 in the Ladakh region.
Read More: General Motors Sells Last India Plant To China’s Great Wall Motors
“We have been unable to obtain the required approvals within the time frame of the deal,” GM International’s executive director of communications, George Svigos, told Reuters. “We will now explore further options for the sale of the site,” adding the automaker “hopes to achieve a price that reflects the value of the asset.”
Great Wall is also winding back investments in India. Last week, it terminated its team of 8-10 Indian employees, including one entrusted with product plans, Live Mint reports. These layoffs come three months after Great Wall’s director of product planning and strategy left the company.
“The term sheet for the sale of Talegaon site between GWM and GM expired on 30 June but we have been unable to obtain approvals within the timeframe,” Great Wall added in a statement. “Hence, both parties decided to terminate the transaction. GWM will continue to pay attention to and study the Indian market, and look for opportunities with the hope to provide a new experience for Indian consumers with innovative products in the future.”
