Chinese auto companies' India investment plans stall amid border tensions
MUMBAI: Investment plans by Chinese automobile companies worth about $5 billion face delays of two years or more as tensions at the border remain unresolved. Negotiations have been put on hold pending clarity regarding such investments, said people with knowledge of the matter.
Great Wall Motors (GWM), Haima Automobiles, Changan Auto and Chery are all likely to see a wait period of at least 12-24 months. How long will depend on the go nment’s stance, said the people cited above.
长城汽车(GWM)、海马汽车(Haima Automobiles)、长安汽车(Changan Auto)和奇瑞汽车(Chery)都可能面临至少12-24个月的等待期。上述人士称，具体多久将取决于印度政府的立场。
GWM’s takeover of the General Motors plant in Talegaon, Maharashtra, will be delayed even further from December. The Haval brand launch from China's largest SUV maker is likely to move to 2022 ag inst the previous plan for a 2021 rollout.
GWM vendor Nobo Automotive, which had been discussing ties with a local partner, hasn’t held any negotiations for the last four-five months, people said.
Changan Automobile, which was seeking land for a greenfield facility, is going slow. Discussions on sourcing and distribution have stalled. The way things stand, the project may not see the light of day before 2023-2024.
MG Motor, which already sells vehicles in India, is reportedly exploring contract manufacturing to meet increased demand rather than bringing in fresh equity to set up a new plant of its own.
Experts say with almost all global OEM having set up a base in India, only the automakers from China could bring in large incremental FDI in automotive sector in India.
The changing geopolitical landscape and the relationship between the US and China under a Joe Biden presidency could play a role in determining this, provided the border situation is resolved and trade resumes, said Puneet Gupta, associate director at IHS Markit. Despite the delays, the Chinese automakers won’t drop their India plans, he said.
“The Indian automotive story will be incomplete without the Chinese investment. Look how the entry of cell phone makers transformed the market--one can expect the same for the Indian automotive industry,” Gupta said. “The business plans may be revised and they may have to follow a stringent localisation regulation in future.”
How long will it take for Business analysts to understand that ,business cannot and should not be done with enemies.
China has proved time and again that it does not respects its neighbors or for that matter another nation's Sovereignty,it has only its own interests at heart ,only its oions are correct and will not hesitate to use its military and now economic powers to subjugate others.
investments let them mend their ways of dealing with neighbors
since unconcerned citizens have shown no inclination to stop buying Chinese vehicles, the go nment must respond by increasing import duties and every other conceivable penalties to deter Chinese companies. one luxury sector is not more important than the country's sovereignty and territorial integrity
China now has no future in the India Market till they settle the border honourably which is something they do not know how to do. China had literally lost India.
We should rescue our MSME sector by sy ematically building local capacity and then banning chinese competitors from the market.
There is no need of more Chinese substandard products in Indian market.
Why do we need Chinese in auto ?
Any day Korean Japanese should be given priority then commies who canâ t be trusted
we are already flooded with Chinese ronic wastes, now we don't need these cheap Chinese goods anymore
we are having more than enough car manufacturing in our country and we need not require any further investment from China at our security point.Hence it is advisable to reject the proposals
Please ban all Chinese items and investments
Forget cars, we should not allow even a from Chinese crooks!
It is Good that We are not having Chinese Investments ,they only go for Subquality Products aimed at capturing Markets at Cheap prices and distroying local Economy.
Chinese sponsored article. We have a competitive automobile industry flourishing and last thing we would want is low quality chinese cars
Automotive industry is no short of foreign players who can invest in india, we always have likes of suzuki hyundai nissan and our very own tata and mahindra who can spearhead the market..
We don't want Chinese Cars or for that matter, nothing from China. We are comfortable with the cars which are already available in India.
Investment vs border prection. I will choose border prection