Chinese businesses are opening offices around the world, but they are unable to enter India’s market, which has proven to be difficult for international businesses to enter. The most recent instance can be seen in the case of Great Wall Motors, a well-known automaker in China (GWM). Great Wall Motors, which entered the Indian market two years ago with the goal of dominating it, has announced that it will cease operations there. Great Wall Motors made an enormous investment to announce its arrival into India at the 2020 Auto Expo. At the event, GWM also unveiled a lengthy list of their vehicles. However, this was not possible.
The company has made the decision to cease operations due to the two years of deteriorating India-China relations. Employees from India who were employed by this company have also been let off as a result of the company’s decision, which cost India an investment of 8000Cr. The question of what transpired over the course of two years, when a corporation expressed its desire to invest up to 8000Cr, is raising itself. The company had started the process of acquiring the Telgaon, Pune, manufacturing facility of General Motors. But it’s thought that Great Wall Motors had a lot of trouble buying the GM facility because of the turmoil in Galvan Valley in 2020. GWM altered its term sheet 6 times over the past 2.5 years, but it was unable to obtain Ministry of Home Affairs permission each time. Considering that Great Wall Motors exited the Indian market with a loss of millions of crores, it is understandable.
The people that worked there have also been impacted by GWM’s exit from India. Additionally, 11 Indian workers who were employed by Great Wall Motors’ India-based operation have been fired by the business after receiving three months’ worth of wages. The target variable has also been provided along with this. Kaushik Ganguly, the head of product planning and strategy for Great Wall Motors’ India business, submitted his letter of resignation in March of this year.
