The proposed sale of the General Motors production facility in Talegaon, India to Chinese automaker Great Wall Motors looks as though it will receive approval from the Indian government following an easing of military tensions between China and India.
According to a recent report from Reuters, which cites anonymous government sources, the Indian government will move to clear some 45 investment proposals from China, part of the 150 investment proposals tied up following a military standoff between the two countries. The 150 investment proposals which were delayed total more than $2 billion.
The proposed sale of the General Motors India plant to Great Wall Motors carries an estimated value of $250 million to $300 million.
“We continue to seek all relevant approvals to support the transaction,” a GM spokesman told Reuters.
Great Wall Motors has previously announced plans to invest $1 billion into India over the next several years. “Should we be granted all relevant approvals, we will push all work forward in India, abiding by the laws and rules laid down by the Indian government,” a Great Wall Motors spokesman said.
General Motors has not directly sold any vehicles in the Indian market since it pulled out in 2017. However, the plant in Talegaon continued to produce vehicles for export, with production only halted as of December 24th, 2020.
Last month, local government officials rejected GM India’s application to close the Talegaon plant, first filed in November of 2020. A labor union representing roughly 1,550 workers demanded that sale of the plant include a transfer of jobs between General Motors and Great Wall Motors. Workers were previously offered compensation affected by plant ownership transfer, but union representatives rejected the proposal, saying that compensation would not suffice without further job security.