China’s Nice Wall kinds India unit; could make investments Rs 7,000 crore, Auto Information, DFL
The Indian subsidiary, Haval Motor India with its workplace in Gurgaon, was registered earlier than October, which implies it gained’t be eligible for the low company tax price of 15% (17.01% with surcharge) for brand spanking new manufacturing items in India introduced by the federal government final month. The corporate, due to this fact, is contemplating establishing one other company entity right here underneath the identify of Nice Wall, an individual within the know instructed ET.
As of now, the corporate is each greenfield and brownfield choices in Maharashtra. It’s contemplating the land acquired by Chinese language truck maker Foton in Chakan close to Pune~
The corporate has written to the Prime Minister’s Workplace, looking for an appointment for its chairman Wei Jianjun with Narendra Modi within the first week of subsequent month, the folks mentioned.
A proper announcement of the India plans could come after this assembly, this particular person mentioned.
Nice Wall didn’t reply till press time Sunday to an e-mail looking for remark.
The corporate has been scouting for websites in a minimum of 5 states — Maharashtra, Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu. Maharashtra has emerged because the strongest contender, adopted by Gujarat, the folks mentioned.
A delegation of Maharashtra trade division officers was in China final week to ask the corporate to the state, trade insiders instructed ET.
“As of now, the company is looking at both greenfield and brownfield options in Maharashtra. It is considering the land acquired by Chinese truck maker Foton in Chakan near Pune,” one of many folks mentioned.
Basic Motor’s Talegaon plant is one other facility it’s actively contemplating.
Foton had acquired land over three years in the past, however since then no progress has been made on its India plans. GM, which exited the India market in 2017, has already offered its Gujarat plant to a different Chinese language carmaker, SAIC. It nonetheless makes vehicles at Talegaon, Maharashtra, for exports.
In actual fact, the particular person mentioned Nice Wall had signed a memorandum of understanding with GM for the Talegaon plant in September, and if all went effectively, it might take possession of it by subsequent yr Might-June.
The corporate was within the plant as a result of it could pace up its debut in India to as early as mid-2021. If it decides to go for building of a brand new manufacturing facility, the launch might occur solely round mid-2022.
The Chinese language firm is on the lookout for contemporary concessions from the Maharashtra authorities as the sooner sops given to GM had been utilised by it. Its executives had sought a gathering with the Maharashtra chief minister, however because of the ongoing political deadlock within the state following the meeting election, it doesn’t anticipate it to occur earlier than the top of November.
An entry of Nice Wall will doubtless stiffen the competitors within the utility car area. SAIC-owned Morris Garages, which launched its mid-size Hector SUV earlier this yr, has seen sturdy demand.
One other automaker, South Korea’s Kia Motors, too has had a robust debut in India this yr, and its Seltos was the top-selling SUVs in October. French producer PSA can be set to deliver its SUVs to India.
Nice Wall has a robust presence within the electrical car area as effectively. The corporate’s solely manufacturing facility exterior house in China at current is at Tula in Russia.
In the meantime, the Indian unit of Nice Wall has named Qingke Shi and Baoyu Chong to its board. Qingke Shi can be the India mission head. Former Maruti Suzuki govt Kaushik Ganguly will steer its India product technique.