Chinese investments in India to come under scanner: Sources

Investments from China in the automobile sector are expected to come under the scrutiny of the Indian government, according to reliable sources in the industry. This is in light of the current political situation between India and China, following which the Maharashtra government announced that it has put on hold the Memorandum of Understanding (MoU) with Chinese auto makers Great Wall Motors (GWM) and PMI Electro Mobility Solutions (joint venture with Foton). When contacted, GWM India did not comment on the status of the MoU. However, TURN OF SPEED has learnt that GWM has not yet received any communication from the Maharashtra government regarding the MoU being put on hold. It has also come to light that, Maharashtra government and GWM are yet to decide on the terms and conditions of the agreement. According to industry insiders, in GWM’s case, there could be a potential delay in obtaining clearances from the Competition Commission of India (CCI) – India’s competition regulator and antitrust watchdog. A well-placed industry source claimed that, not just GWM, the government may potentially scrutinize the existing investment by MG Motor India, which is owned by Shanghai Automotive Industry Corporation (SAIC), a Chinese state-owned company. MG Motor India has already invested INR 2,200