Chinese carmaker Great Wall Motors may set up plant at Pune

[Azazel]

Chinese carmaker Great Wall Motors may set up plant at Pune

NEW DELHI: China's largest SUV maker, Great Wall Motors is likely to be the first carmaker from China to set up a plant on Indian soil. China's eighth-largest carmaker has zeroed in on Pune in Maharashtra for the plant and aims to start production by 2016.

GWM has also decided to launch its globally success Haval H5 model in India, two people with knowledge of the development said. The company was earlier considering Gujarat and Tamil Nadu to set up its plant, but chose Maharashtra due to a host of incentives offered by the state government.

"Great Wall has also taken into account Chinese government-owned Beiqi Foton Motor Company's decision to set up its commercial vehicles facility at Khed near Pune with a cumulative investment of Rs 1,676. The proximity factor is expected to help both the companies achieve back-end synergies," said a person having direct knowledge of the development.

The Chinese company has already sent a team of senior executives to India to workout a schedule to foray into the domestic market. The finer details of investment and capacity would be revealed in the next few months, the person added. Xi Liang Chen, Indian operation project manager of the Chinese automaker, declined to comment on the India strategy.

According to sources in the automobile industry, Great Wall has already initiated product clinics of the H5 SUV for the Indian market. The product would be showcased along with a few other models from the GWM stable in the February 2014 Auto Expo in New Delhi.

It has, however, ruled out any joint venture with any Indian partner unlike another Chinese carmaker SAIC that now holds 9% equity in its US car partner's local subsidiary General Motors India. Great Wall is likely to be the first Chinese auto company to establish a wholly owned subsidiary in India and introduce its own cars and SUVs.

Great Wall had earlier negotiated with the New Delhi-based International Car and Motor Limited (ICML), the manufacturer of utility vehicle Rhino and Sonalika tractor in India. The Chinese company was looking at utilising ICML's production facilities at Amb in Himachal Pradesh and its distribution network to market the H5 SUV in India, but failure in negotiations prompted it to go on its own.

Chinese carmaker Great Wall Motors may set up plant at Pune - The Economic Times

 

[perplexed]

let me guess, they are bringing engineers from CHina like they are doing in pakistan ? Or they find our engineers worthy enough ?

 

[Genesis]

So it begins......

 

[Yzd Khalifa]

let me guess, they are bringing engineers from CHina like they are doing in pakistan ? Or they find our engineers worthy enough ?

Business is business as long as it's lucrative.

 

[Guynextdoor2]

So it begins......

you mean 'Chinese are taking over'

BTW I hope their cars have passed our tests.

 

[Yzd Khalifa]

Just putting Indians to work as cheap labor. We are following in the footsteps of the medieval Islamic powers

What about KSA? ^ ^ will you guys us give a greatly modified Qing submarines xD?

 

[Guynextdoor2]

let me guess, they are bringing engineers from CHina like they are doing in pakistan ? Or they find our engineers worthy enough ?

Highly unlikely. I think it'll actually be more expensive to relocate Chinese engineers to India than source locally. But there may be an initial batch for setting up the plant.

 

[Genesis]

you mean 'Chinese are taking over'

BTW I hope their cars have passed our tests.

I don't know why, but seeing some of the Indian members post, it feels like you guys are the 2nd in GDP, you guys have three+ times the per capita than us. That you guys are part of the developed countries, that you are equal to the US, UK, France, and such.

Did I fall asleep and wake up in bizzaro world?

 

[Shabz Nist]

I don't know why, but seeing some of the Indian members post, it feels like you guys are the 2nd in GDP, you guys have three+ times the per capita than us. That you guys are part of the developed countries, that you are equal to the US, UK, France, and such.

Did I fall asleep and wake up in bizzaro world?

You misunderstand us. All we're saying is that chinese cars suck. That's just about it.
They will get slaughtered in the Indian market if they don't start performing.

 

[Guynextdoor2]

I don't know why, but seeing some of the Indian members post, it feels like you guys are the 2nd in GDP, you guys have three+ times the per capita than us. That you guys are part of the developed countries, that you are equal to the US, UK, France, and such.

Did I fall asleep and wake up in bizzaro world?

You probably did coz nothing you said relates to making of cars....

 

[Genesis]

You misunderstand us. All we're saying is that chinese cars suck. That's just about it.
They will get slaughtered in the Indian market if they don't start performing.

How do you know our cars suck? Do you know how much it cost? How are we suppose to make it the equal of a Lambo at a fraction of the price?

You have to consider the cost. We also have our expensive cars, it's about 600+ thousand Yuan, with some even more. It's a nice ride, but in terms of that kind of cash, most would go for Mercedes, including me.

So we have no way in winning luxury, because our prestige of country and company is not there yet, so we must go for cheap, and guess what's the side effect of cheap.

 

[Shabz Nist]

How do you know our cars suck? Do you know how much it cost? How are we suppose to make it the equal of a Lambo at a fraction of the price?

You have to consider the cost. We also have our expensive cars, it's about 600+ thousand Yuan, with some even more. It's a nice ride, but in terms of that kind of cash, most would go for Mercedes, including me.

So we have no way in winning luxury, because our prestige of country and company is not there yet, so we must go for cheap, and guess what's the side effect of cheap.

Most of the common cars in India are quite cheap. But they are also pretty solid. Nano started out pretty bad...but even that has a pretty good build quality now. For the Indian customer, its never about bells and whistles.....what he/she cares about is the mileage and for how long it can perform without requiring maintenance. If it doesn't match up, the market will kill the car manufacturer. That's what happened to so many failed foreign car makers in India.

 

[Truth Finder]

So, outsourcing in manufacturing from china has already started. But, economists predicted that it would start from 2015. 2 years in advance.

 

[Shabz Nist]

So, outsourcing in manufacturing from china has already started. But, economists predicted that it would start from 2015. 2 years in advance.

Its all good for India, whether the projects come from china or the west.
From Japan through china all the way over to the USA, all are welcome to invest in India constructively. Pakistanis can invest too...but as the saying goes.."Trust, but verify"

 

[navtrek]

I don't know why, but seeing some of the Indian members post, it feels like you guys are the 2nd in GDP, you guys have three+ times the per capita than us. That you guys are part of the developed countries, that you are equal to the US, UK, France, and such.

Did I fall asleep and wake up in bizzaro world?

To be honest i goggled to see more about the car but i didn't like the way it looks not because its Chinese but its not good by looks and performance i still dont know.

Lets see however its a good move happy that it creates lot more jobs in India. Wishing the company a best of luck. May they produce better designs as well.