Business

GWM Quits India: Chinese company wraps up business before launching car in India, Indian employees fired

Photo:FILE

Great Wall Motors

GWM Quits India: Chinese companies are setting up their business around the world, but Chinese companies are also unable to set foot in the Indian market which has proved to be slippery for foreign companies. The latest example has emerged in the form of China’s popular automobile company Great Wall Motors (GWM). Great Wall Motors, which came with the intention to dominate the Indian market with a huge investment of 8000 crores two years ago, has announced to wind up its business from India.

At the 2020 Auto Expo, Great Wall Motors announced its entry into India with a huge investment. GWM also released a long list of its cars at the expo. But this could not happen. Due to deteriorating India-China relations for the last two years, the company has decided to wrap up its business. Due to this decision of the company, where India lost an investment of 8000 crores, Indian employees working in this company have also been discharged.

Why did GWM leave India?

The question is arising that when a company is expressing its willingness to invest as much as 8000 crores, what happened within 2 years that suddenly India had to say goodbye. The company had initiated the process of acquiring General Motors’ manufacturing plant at Telgaon, Pune. But it is believed that due to the conflict in Galvan Valley in 2020, Great Wall Motors faced a lot of difficulties in acquiring the GM plant. During the last 2.5 years, GWM changed its term sheet 6 times, but it could not get the approval of the Ministry of Home Affairs. After all, Great Wall Motors said goodbye to the Indian market by making a loss of thousands of crores.

Indian employees fired

GWM’s departure from India has also affected the employees working in it. There were also 11 Indian employees employed in Great Wall Motors’ India-based operation, who have been fired by the company after paying three months’ salary. Along with this, the target variable has also been given. In March this year, Kaushik Ganguly, head of product planning and strategy at Great Wall Motors’ India operations, tendered his resignation.

After app companies, now car company

Business relations between India and China have come to the ground in the midst of the Galwan conflict in 2020. This can be a big return in foreign direct investment from India, apart from this, many Chinese companies have been shown the way out in the field of technology. Apart from ByteDance, the Chinese company that makes Tiktok, Huawei has also suffered from this struggle.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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