Chinese automaker Great Wall Motor has agreed to buy General Motors’ (GM) car plant in Maharashtra, two sources aware of the matter said, setting in motion its plan to build cars in the country.
GM in India did not immediately respond to a request for comment. Great Wall was not immediately reachable for comment.
Chinese automakers are accelerating plans to build cars in India to combat slowing sales at home and have been encouraged by the initial success of rival SAIC Motor in the country, sources have told Reuters.
While car sales in India are stuttering, the market is expected to become the world’s third biggest by 2026, behind China and the United States, according to consultancy LMC Automotive.
Great Wall’s move also comes at a time when global carmakers like Fiat Chrysler, Ford Motor and GM are scaling back in India after battling it out in one of the world’s most competitive markets dominated by smaller, low-cost cars made by Maruti Suzuki and Hyundai Motor.
The American automaker continued to build small cars for export to countries like Mexico at its second plant in Talegaon in Maharashtra state which it has now agreed to sell.