Chinese auto maker Great Wall Motors on Friday said it has inked a pact with General Motors (GM) to acquire the latter's manufacturing facility in Talegoan, near Pune.
The transaction, which is subject to regulatory approval, is expected to close in the second half of 2020, Great Wall Motors (GWM) said in a release.
The auto maker is set to debut its Haval brand and electric vehicle at the Auto Expo-Motor Show 2020, slated to be held in Greater Noida early next month.
"Under a binding term sheet signed on Thursday, the GM India legal entity, which includes the Talegaon facility, will transfer to GWM," the release said.
After more than two decades of operations in India, General Motors stopped selling cars in the country from 2017 end, as part of its global restructuring actions.
GWM Global Strategy Vice President Liu Xiangshang said the transaction would underpin the company's plan to enter and invest in India.
"The Indian market has great potential, rapid economic growth and a good investment environment. Entering the Indian market is an important step for Great Wall Motors' global strategy," he said.
GWM will officially debut its Haval brand and GWM EV at the Delhi International Auto Show, and launch its Indian market plan, he said.
"Great Wall Motors' investment will create more jobs, including direct and indirect employment, further enhancing the skill level in the auto industry, promote the development of the local supply chain, R&D and related industries," Liu added.
GM will provide a separation package and transition support for employees impacted due to the deal, as well as an orderly transition for partners, the release said.
"Since focusing the Talegaon plant on manufacturing for export markets in 2017, GM has been exploring strategic options for the better utilisation of the site," GM International Operations Senior Vice President Julian Blissett said.
Talegaon manufacturing facility had delivered excellent vehicles for domestic and export markets, he added.
General Motors' decision to cease production at Talegaon is based on its global strategy and optimisation of the manufacturing footprint around the world, Blissett said.
"We will work closely with the state and national governments to secure the required approvals so that GWM can elevate production at the plant even further and maintain," he said.
Chevrolet will continue to honour all warranties and provide after-sales support, including ongoing service and parts requirements for existing customers in India, the release said.
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