American carmaker General Motors has confirmed that it has dropped the plans to promote its Talegaon plant in India to China’s Great Wall Motor. The deal fell by way of because the carmaker did not safe regulatory approvals from the Indian authorities.
India has had a conservative strategy to permitting capital investments from Beijing amid the political tensions between the nations.
The Chinese SUV-maker agreed to a $300-million (Rs 2,342 crore) takeover of GM’s facility in January 2020 with the intention of additional investing $1 billion (Rs 7,808 crore) to mark its presence within the nation’s rising passenger automobile (PV) market. The two firms had prolonged the settlement twice earlier than it expired on Friday.
George Svigos, ED of communications, GM International stated, “We have been unable to obtain the required approvals within the time frame of the deal. Our strategy in India remains unchanged and we will now explore further options for the sale of the site.”
He stated that the corporate “hopes to achieve a price that reflects the value of the asset”.
The Chinese automaker confirmed the termination of the deal and stated, “Great Wall Motor will keep its attention to the Indian market in the future and continue looking for new opportunities,”
Svigos stated that the power can be utilized by quite a lot of industries, together with non-automotive firms as he affirmed that GM will proceed to discover all choices.
(With inputs from Reuters)
Source: www.financialexpress.com”