Will GWM’s backdoor entry affect its competitive edge in India?

Chinese SUV maker, Great Wall Motors (GWM)’s decision to enter the India market via the CKD/CBU route is expected to discount its competitiveness in the Indian market.  According to experts, the GWM Group, unlike other automakers produces around 50% of its parts in-house, and it is this advantage that gives it the edge over competition worldwide in terms of product value, quality and technology offering.  The company has been looking to extend this competitive offering in India through its proposed production at the Talegaon plant in Maharashtra. In early 2020, GWM announced its India entry along with an agreement with General Motors to acquire its plant in Talegaon. It planned to invest $1 billion in India and signed an MoU with Maharashtra government. However, the MoU was put on hold due to border tensions between India and China. An insider at Maharashtra Industrial Development Corporation (MIDC) said, “There was no further information on the MoU.” An e-mail to GWM Group also went unanswered.  While the company still awaits regulatory approvals, they now look far-fetched, given the COVID-19 situation in India. The company is believed to be tweaking its India strategy to suit its immediate needs of globalization and tapping one of the