Great Wall Motors has reportedly approved 1.6 million USD for setting up local office for its Haval subsidiary in India
MG Motor India has huge plans for the domestic market and is debuting with the Hector premium SUV later this month. The British manufacturer has committed Rs. 5,000 crore for India and phase one consumed Rs. 2,300 crore with the second phase waiting to be finalised by the end of this year.
The company has a 10-year strategy for local customers and is focussed on building the brand reputation in its initial stages rather than volume. The Chinese state-owned MG will see a fellow compatriot stepping in as Great Wall Motors is reportedly eyeing an investment of over one billion USD in India.
Reports suggest that Great Wall Motors has already approved the Indian operations and it will be headquartered in Gurgaon. The Haval subsidiary will enter India as part of GWM in the next three to five years and is planning to showcase its cars at the 2020 Auto Expo in Greater Noida.
For establishing local office, Great Wall Motors allocated 1.6 million USD in February and it could be named India Haval Auto Sales or India Haval Auto. The Chinese carmakers are stepping out of their comfort zone at home and they are intending to make a big impact in India, as it’s one of the largest markets across the globe.
India is projected to overtake Japan as the third biggest car market in the coming years as well. Location scouting for a production facility is also underway as Tamil Nadu considered to be the Detroit of India, Andhra Pradesh and Gujarat are in line with potential sites.
Great Wall, the largest producer of SUVs and pickup trucks in China, could follow a similar strategy as MG and could bring in Haval branded premium SUVs initially. By the final quarter of 2022, GWM is expected to roll out its first SUV for India with high localisation targetting a price range somewhere between Rs. 10 lakh and Rs. 20 lakh.
Approval on a “dedicated emerging market architecture” is awaited and the immediate focus will be on localising the models reportedly. Great Wall Motors could evaluate launching electric vehicles as well but it is not the Chinese brand’s initial priority.
With Haval H6 coupe SUV already spied in India, it raises the speculations over whether it could be the first model or not. It is powered by a 1.5-litre turbo engine producing 169 horsepower in China. The H6 series plays an integral role in the brand’s sales. GWM aims to retail 1.2 million units overall this year.