Great Wall Motors to set up manufacturing facility in Pune

Monday 10 June 2013, 11:45 AM by

Great Wall Motors, China's leading utility vehicle manufacturer, is believed to be working towards setting up its manufacturing facility on the Indian turf. The company is looking at Pune, Maharashtra as the destination for its maiden plant in India that could be production ready by 2016. This would make Great Wall Motors to become the first Chinese auto maker to set its foot on the Indian soil.

As per reports, the China's eighth largest car maker has decided to introduce its global success- the Haval H5 Sports Utility Vehicle (SUV) in the Indian auto market. A person close to the development revealed that initially the Chinese firm was considering Tamil Nadu as first choice destination for its manufacturing facility, but it has now changed its plans and zeroed in on Pune. Further, Great Wall Motors was lured away by the attractive bundle of incentives offered by the Maharashtra state government. It must be noted that the company is poised to become the first Chinese auto maker to enter Indian auto market as a completely owned subsidiary and launch its own vehicles, unlike SAIC Motor Corporation that has joint venture with General Motors India.

A source close to this development was quoted as saying, “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.”

Great Wall Motors has sent a team of senior officials to plan and schedule its arrival in the immensely competitive domestic automotive space. The Chinese firm is yet to reveal its investment on its Indian project and the planned production annual output from its upcoming manufacturing facility. As per few industry sources, Great Wall Motors has already started product clinics of its Haval H5 SUV model for the domestic market. Along with few other vehicles, the Haval H5 would make its public debut in front of the Indian audience at the 2014 New Delhi Auto Expo.

Reportedly, Great Wall Motors had tried negotiations for a joint venture with International Car and Motor Limited (ICML), a New Delhi-based automobile maker of Rhino utility vehicle and Sonalika tractors. The Chinese firm wanted to use ICML's manufacturing facility at Amb in Himachal Pradesh, for localised assembly operations of its Haval H5 model. However, the negotiations failed and Great Wall Motors has now decided to set up its own production plant on the Indian turf.