General Motors has sold its production facility in Talegaon, India to Chinese automaker Great Wall Motors, bringing an end to all GM vehicle production in the country.
According to Reuters, Great Wall Motor paid between $250 million and $300 million USD for the Talegaon plant, which includes both a vehicle production line and an engine assembly line. Under GM’s control, the plant had an annual vehicle capacity of around 165,000 units per year and an annual engine capacity of 160,000 units. Great Wall Motors is expected to produce between 150,000 and 160,000 cars at the facility annually.
Great Wall Motors is looking to further expand its business outside of China with plans to build and sell cars in India. As Reuters points out, many Chinese automakers have been looking to expand outside of their home market as the country’s hot automotive market begins an inevitable cool down.
“The Indian market has great potential, rapid economic growth and a good investment environment,” said Great Wall Motor’s vice president of global strategy, Liu Xiangshang. “Entering the Indian market is an important step for Great Wall Motors’ global strategy.”
The sale of the Talegaon plant is expected to be complete by the second half of 2020. It’s not entirely clear when Great Wall Motors vehicles may begin to roll off the assembly line at the facility, though the company is planning to have it back up and running within a year.
This development means GM will no longer have any manufacturing presence in India. The automaker pulled out of the country in 2017 after a failed attempt at launching its Chevrolet brand in the region, though it is still building a small number of cars for export at the Talegaon plant. Julian Blissett, senior vice president, GM’s international operations, told Reuters the company had been going back and forth over the future of the Talegaon facility prior to the sale.
“Our decision to cease production at Talegaon is based on GM’s global strategy and optimization of our manufacturing footprint around the world,” Blissett said.