China's Great Wall Motor shelves $1 billion India plan, fires all employees!!!

[Solidify]

Chinese automaker Great Wall Motor has been planning to enter the Indian market since 2020 but now becomes one of the biggest casualties of New Delhi's increased scrutiny of investments from Beijing.​

China's Great Wall Motor has shelved plans to invest $1 billion in India and laid off all employees at its operations after failing to obtain regulatory approvals, three sources with direct knowledge of the matter said on Friday.

Dozen employees laid off​

The sources, who declined to be named, said that Great Wall laid off about a dozen employees at its Indian business on Friday after telling them it had failed to obtain foreign direct investment approval from the government to buy a former General Motors (GM) plant in the country.

Earlier on Friday Great Wall and GM called off the plant deal, drawing a line under a two-year initiative. An Indian government spokesperson could not immediately be reached for comment outside regular business hours.

The axed employees were working on the company's planned India entry in departments including finance, strategy and marketing, two of the sources said, adding that they are to be given three months' severance pay.

Full article
Source : https://www.thehindu.com/business/c...-plan-fires-all-employees/article65592045.ece

 

[Communism]

India has pretty poor conditions for foreign investment.

Just about every single company that made capex investments in India got totally screwed over by the way the Indian government and society works.

I see no future in foreign companies investing in hard production in india, and that investment into India will probably be limited to software.

 

[FuturePAF]

India has pretty poor conditions for foreign investment.

Just about every single company that made capex investments in India got totally screwed over by the way the Indian government and society works.

I see no future in foreign companies investing in hard production in india, and that investment into India will probably be limited to software.

With all the projections of Indian GDP by such and such year, is there an equation that plots lost opportunity and realistic GDP growth (I.e. wasted potential GDP growth) considering India’s lagging industrial development as it relates to their closing demographic dividend and debt levels.

Considering the benchmarks Japan, then South Korea, and finally China achieved, there has to be a more accurate estimate of how much India can develop if it fails to hit those benchmarks by a certain stage of its demographics.

The only counterbalancing things in their favor is their large population size, but at a certain point of avg. population age that has to become a hindrance and a liability rather then a opportunity or growing market.

The thought came to me as Indian GDP is well short of the $5 Trillion they had hoped for by 2020, and there is probably a long term cost to failing to hit that level at a certain stage of their development/demographic cycle.

 

[Baba_Yaga]

Just about every single company that made capex investments in India got totally screwed over by the way the Indian government and society works.

Can you name a few of these "just about every single company"? that got screwed over due to govt policies and society? I can only remember 3-4 that left because they couldn't compete. Ford motors couldn't compete with the plenty of Japanese, Korean and Indian manufacturers and thus left. Same for General Motors. GM exited about a dozen other countries the same time it left India as part of a restructuring. Harley Davidson also left because they couldnt compete with Indian and Japanese manufacturers, they are barely surviving even in their home country - only old bald men with metallica tshirts wear them and that kind of look stopped being cool like 20 years ago. Like 9.5 out of 10 guys in the US will chose a Japanese bike over a Harley. Same for United Motors that left because of poor sales and because they received backlash for using low quality trash chinese parts. All these American manufacturers tried selling expensive big American type cars in a low income country with a traffic problem, well no shit they failed.

Now as for this Great Wall Motors, well this is probably the only example of what you mentioned, India isn't exactly hyped up about Chinese investment after events of 2020. If this was a US or Korean or Japanese manufacturer, they would have rolled out the red carpet and approved their investment proposal a hundred times over by now.

Now can you name some other manufacturers that left due to bad policy and society or was that just potty coming out of your mouth?

 

[Communism]

Can you name a few of these "just about every single company"? that got screwed over due to govt policies and society? I can only remember 3-4 that left because they couldn't compete. Ford motors couldn't compete with the plenty of Japanese, Korean and Indian manufacturers and thus left. Same for General Motors. GM exited about a dozen other countries the same time it left India as part of a restructuring. Harley Davidson also left because they couldnt compete with Indian and Japanese manufacturers, they are barely surviving even in their home country - only old bald men with metallica tshirts wear them and that kind of look stopped being cool like 20 years ago. Like 9.5 out of 10 guys in the US will chose a Japanese bike over a Harley. Same for United Motors that left because of poor sales and because they received backlash for using low quality trash chinese parts. All these American manufacturers tried selling expensive big American type cars in a low income country with a traffic problem, well no shit they failed. Now can you name some manufacturers that left due to bad policy or society or was that just potty coming out of your mouth:?

Nearly every single U.S. company was essentially instructed by the political class in Washington to try to move their hard manufacturing from China to India and nearly every single one of them failed.

And this is despite Chinese manufacturing wages being significantly higher than Mexican wages.

The results speak for themselves.

 

[LakeHawk180]

Chinese automaker Great Wall Motor has been planning to enter the Indian market since 2020 but now becomes one of the biggest casualties of New Delhi's increased scrutiny of investments from Beijing.​

China's Great Wall Motor has shelved plans to invest $1 billion in India and laid off all employees at its operations after failing to obtain regulatory approvals, three sources with direct knowledge of the matter said on Friday.

Dozen employees laid off​

The sources, who declined to be named, said that Great Wall laid off about a dozen employees at its Indian business on Friday after telling them it had failed to obtain foreign direct investment approval from the government to buy a former General Motors (GM) plant in the country.

Earlier on Friday Great Wall and GM called off the plant deal, drawing a line under a two-year initiative. An Indian government spokesperson could not immediately be reached for comment outside regular business hours.

The axed employees were working on the company's planned India entry in departments including finance, strategy and marketing, two of the sources said, adding that they are to be given three months' severance pay.

Full article
Source : https://www.thehindu.com/business/c...-plan-fires-all-employees/article65592045.ece

Okay so this is logical. Indian Government isn’t going to give an easy green flag to Chinese investments. Makes no sense for the company to stay around waiting.

They still run an R&D facility in India. Doesn’t look like it’s going anywhere. But honestly? It’s a tough road for Chinese investors in India.

We are open to making almost all investments easy — except Chinese ones. I guess for now, please stay away?