Monday, December 5, 2022
HomeDigit NewsGWM fires: Indian employees expelled from China, reason for FDI clearance

GWM fires: Indian employees expelled from China, reason for FDI clearance

GWM fires: Great Wall Motors, China’s largest SUV maker, has fired all Indian employees. The company has given a severance package of 3 months to all the employees, along with a variable time period of 6 months. In fact, Great Wall Motors Company had planned to enter India with an investment of $ 1 billion. But after waiting for FDI clearance for two and a half years, the company has pulled out of this plan and at the same time India has fired all the 11 employees.

Entry plan in India useless
In the year 2020, Great Wall Motor had entered into a term sheet agreement to buy the Talegaon plant of American company General Motors. The company also participated in Auto Expo in 2020. Before Great Wall Motor, many Chinese companies have put their entry plans in India on hold. Changan, Haima and Chery also had plans to enter India, but they could not make it happen. E-mails sent to Great Wall Motor in this regard did not elicit any response.

The proposal of the company was stuck for more than 2 years. Because of this, the American company had to find other avenues to sell its plant. The Great Wall was exploring the possibilities of entry in India for almost a decade. He first tried in 2014-15 and then tried in 2017 also. Eventually it signed a term sheet to buy GM’s Talegaon plant in 2020. The company had plans to play an important role in India’s auto market and provide employment to 30,000 people.

plan stuck in india
The Haval SUV maker has made several attempts to enter India in the last two years. Also tried assembling in CKD form and importing the finished vehicle, but without success. During this, the company has started its operations in Thailand and Brazil. But his plan got stuck in India. During this, the company sent the team made for India to other markets. In India also the number of employees was halved.

Company’s directors are resigning
In March, the company’s director (strategic and planning) Kaushik Ganguly resigned. He joined the company in October 2018. Before that, in March 2021, Director (Sales and Marketing) Hardeep Singh Brar also signed. Great Wall Motors’ proposal did not go ahead due to the increasing border dispute between India and China and India’s tough stand on Chinese investments.

- Advertisement -
MOBILE

- Advertisment -

- Advertisment -spot_imgspot_imgspot_img

Auto

Two Wheeler

BUSINESS AND FINANCE

Digit News

spot_img