Great Wall Motor in talks to enter India - SIAM official

MUMBAI/NEW DELHI Mon Dec 10, 2012 8:42pm IST

Portugal's Carlos Sousa and co-pilot Jean-Pierre Garcin of France drive their Great Wall during the fifth stage of the fourth South American edition of the Dakar Rally 2012 from Chilecito to Fiambala January 5, 2012. REUTERS/Jacky Naegelen/Files

Portugal's Carlos Sousa and co-pilot Jean-Pierre Garcin of France drive their Great Wall during the fifth stage of the fourth South American edition of the Dakar Rally 2012 from Chilecito to Fiambala January 5, 2012.

Credit: Reuters/Jacky Naegelen/Files



MUMBAI/NEW DELHI (Reuters) - Great Wall Motor Co (601633.SS) is in talks to open a plant in India, a move that would make it the first Chinese carmaker to operate in the country without a partner.

"They are meeting industry. They are meeting government. They are meeting suppliers," Vishnu Mathur, director general of the Society of Indian Automobile Manufacturers - a lobby group, told Reuters in an interview on Monday.

Great Wall (2333.HK), which sells its sport-utility vehicles and pick-up trucks in other emerging markets such as Russia and South Africa, is not yet present in India's booming SUV market, one of a few bright spots in the local automotive industry.

China's eighth-largest car maker, which sent a delegation to India last week, is targeting 2016 to start manufacturing in India, Mathur said, adding Great Wall executives met SIAM representatives last week.

Great Wall was not available to comment.

Passenger utility vehicle sales, helped by subsidies on diesel fuel, rose 62 percent in the April-November period, while car sales rose 1.3 percent.

New entrants will compete with market leader Mahindra and Mahindra (MAHM.NS) and Tata Motors (TAMO.NS). Also, Italian carmaker Fiat FIA.MI said last week it would launch Jeep, an SUV brand controlled by U.S. subsidiary Chrysler, in late 2013.

While India has attracted billions of dollars investment from overseas manufacturers, such as Ford (F.N), General Motors (GM.N) and Toyota (7203.T), Chinese carmakers have yet to make significant inroads.

Chinese group SAIC Motor Corp (600104.SS) cut its stake in GM's Indian operations to 9 percent in October, from 50 percent.

A slowdown in India's car market over the past 18 months has raised fears of overcapacity, with sales expected to grow 1-3 percent in the financial year that ends in March.

Great Wall, China's largest car maker without a foreign partner, aims to more than double annual sales by 2015 by targeting more overseas markets, its chairman said last month.

(Additional reporting by Fang Yan in BEIJING; Editing by Dan Lalor)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see
Comments (1)
Henli wrote:
The Indian automotive industry embarked on a new journey in 1991 with de-licensing of the sector and subsequent opening up for 100% foreign direct investment (FDI). Since then almost all global majors have set up their facilities in India. Now it is the turn of Great Wall Motor Co. To name some of the recent investments by foreign companies, earlier this year Schaeffler announced planned investments of 150 million Euros (Rs. 1050 crores) in India over the next three to four years for expanding existing plants at Pune, Hosur and Vadodara – besides building green field plant at Savli, near Vadodara. This kind of investments by major companies will definitely help to realize the vision of AMP 2006-2016 to emerge as the destination of choice in the world for design and manufacture of automobiles and auto components.

Dec 11, 2012 2:25pm IST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 


Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 



Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage