Despite Challenges, Great Wall US$ Billion Plans For India Remain On Track

Avishek Banerjee Feb 10, 2020

When it comes to making its presence felt in the complex Indian automotive landscape, Chinese players or even products have always faded into oblivion. However, China’s leading automobile manufacturer Great Wall Motors (GMW) is keen to bust that myth and is confident of gaining a strategic foothold in the premium SUV segment with the ‘Haval’ brand as well as in the zero-emission vehicle space with ‘GW EV’ brand. The Baoding, Hebei-headquartered firm unveiled its Haval brand of sport utility vehicles (SUVs) and vehicle concept 2025 at Auto Expo 2020 to mark its foray into the Indian market. It will be the second vehicle manufacturer from China to enter the Indian market after SAIC Motor Corp-owned MG Motor India.

Kaushik Ganguly, Director-Strategy and Planning at Great Wall Motors India told BW Businessworld recently, “Yes, there have been not-so-good perceptions about Chinese products in India. But despite that, we are very confident on our products and (also of) our strengths. We have been winning in certain segments in the biggest as well as the toughest auto market in the world. With the kind of products that we will offer as a package, a whole lot of consumers would embrace us.” Talking about its products’ USP, he affirmed, “With the kind of safety capabilities that we would drive for, no mainstream players is offering anywhere near to that in our first product. We are not focussing on being the cheapest model, but on better battery chemistry in terms of storage density and having more smart features.” It is to be mentioned that Great Wall Motors is China's largest sport utility vehicle (SUV) and pick-up truck producer. It sells passenger cars and trucks under the Great Wall brand and SUVs under the Haval and WEY brands.

Sharing the company’s journey in India so far, Ganguly also highlighted, “The connection with India started way back in 2016 when we opened an R&D Centre in India and we now have 10 such centres across the world. Since then, we have also been studying the Indian market and were ascertaining the correct time to enter. So, after 4 years of deliberation, we are finally launching the brand today (at the Auto Expo). Next year, we will roll out our first product under the Haval brand. We will also consider GWM brand of electric vehicles in India. Exact products we will share once we are nearer to the rollout.” Last month, GMW announced its decision to acquire the Talegaon-based vehicle manufacturing plant of American auto biggie maker General Motors for an undisclosed sum. It has already firmed up its plans to invest an estimated total of 1 billion US$ (approx. Rs. 7,000 crore) in India in a phased manner, covering manufacturing plant, vehicle research and development, production of power batteries and electric drives, vehicle and component manufacturing. The acquired plant has a capacity of 135,000 units per annum and can go up to 300,000 units per annum on a three-shift basis. At the same time, it plans to provide estimated 3,000 direct employment in a phased manner.

Without sharing the amount earmarked for its manufacturing facility, he maintained, “We are not discussing investments because we have just signed a term sheet with General Motors. So, it is not the correct time to discuss the values and investments in particular. But we are very much aligned with the government’s make-in-India programme. We are taking up the General Motors Talegaon plant which we will in the second half of this year. Then further investment will go into this plant as well for modifying as per our needs. The idea is to have local manufacturing as much as possible in addition to a local supply chain. And make vehicles for India and export out of India.”

Talking about GMW’s strategy for India, Ganguly affirmed, “We would look at a lot of innovation in all areas, whether it is the products, sales process, whether (it is about) how we can connect with the customers. Also, not many OEMs commit that kind of investments that we are making.” On whether the company will launch India-specific products, he maintained, “As of now, all our products are global products. Since we have a global outlook, we don’t make products for any particular market. But as the tastes and preferences are very different from each other, they are modified according to consumers’ needs. Even if the primary market is India (for any model), it will still be exported to other countries.”

Sharing his thoughts on the Indian market he maintained, “Even though 2019 was a bad year for the (auto) industry largely because of the financial sector crisis. Also, the auto industry is a very cyclical business in its nature. We believe in the long-term growth story of India and are not adopting the CKD mode (of assemble kits from overseas markets) and then see how things work out. So, we are very much convinced and are now going the whole hog.”Without sharing any sales target, he maintained, “Our top down mandate is very clear (and that is) that let’s establish the brand and then talk about the numbers.”