DOCSLIB.ORG

India Hits the Brakes on China Auto Investments

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
India Hits the Brakes on China Auto Investments India hits the brakes on China auto investments As India-China tensions flare, Maharashtra puts Great Wall Motors proposal on hold; Changan and Chery may also have to wait longer Murali Gopalan Mumbai, June 22 With Maharashtra putting investments of Great Wall Motors on hold, it will now be a waiting game for Chinese automakers keen on entering India. No clear solution in sight Maharashtra’s decision has been prompted by the recent violent face-off between Indian and Chinese troops at Ladakh with no clear solution to the impasse. Till then, there is really no question of any investment from China getting an easy go-ahead from the Centre. From the auto industry’s point of view, this would mea that Chanan Automobile will also have to resort to a wait-and-watch attitude till tempers cool down at the political level. The Chinese carmaker has been scouting for sites with Andhra Pradesh and Tamil Nadu reportedly being on top of the favoured list. The other prominent brand from China being touted as a possible partner for Tata Motors is Chery Automobile. The Indian automaker had recently decided to spin off its passenger car business as a joint venture, which included a renewed focus on electric mobility. According to market sources, Chery is the lead contender but the situation at Ladakh will now mean that things will just have to take a backseat. “Clearly, any move to go ahead with a Chinese partner will send a wrong message,” a top auto industry executive told BusinessLine. Across the country, there is some kind of an anti-China sentiment building up which, he added, was “bad optics” for new investments. It was in January when Great Wall Motors announced its intent to take over General Motors’ Talegaon plant in Maharashtra. The Chinese SUV maker had also said that it would acquire GM’s facility in Thailand, a process which was recently completed. From GM’s point of view, this takeover by Great Wall Motors would mark a complete exit from its India operations. Three years ago, it had signalled its intention by selling its other plant in Halol, Gujarat, to yet another Chinese company, SAIC Motor Corp. GM and SAIC have been partners for many years now and China remains one of the key priority markets for the American automaker, in addition to the US and Latin America. It has pretty much called it a day across every other region right from Russia and South Africa to India, ASEAN and Australia. Great Wall Motors is critical to GM’s India exit plans since there is a lot of work to be done in terms of manpower rationalisation, incentives to existing workers and so on. “When GM sold its Halol plant to SAIC, it still had Talegaon on its radar which meant that the India chapter had not closed yet. With Great Wall Motors, the sale will pave the way for a complete exit,” said an auto industry executive. Covid-19 impact The sooner this is done, the better it is for GM, but this will depend on how quickly India and China bury the hatchet going forward. In any case, there is the overhang of the Covid-19 pandemic where the world is furious with China’s alleged role in wreaking havoc. This has also prompted India to draw up more firewalls when it comes to foreign direct investment proposals from countries that share its borders, a clear message to China. Incidentally, when SAIC took over GM’s Halol plant, it was quick to steer clear of any Chinese brand association in its India innings. The company, instead, decided to follow its global strategy of using MG Motor, the British brand it had acquired over a decade earlier, as the face for India. MG wasted little time in rebooting operations at its Gujarat facility acquired from GM and hit the bull’s eye with its Hector SUV. It is, of course, a moot point if Indian customers will now perceive the vehicle as a British or Chinese brand amidst this heightened tension. However, there are no two ways about the fact that the MG Hector has been a huge success since it was launched last year. It will now face its biggest test on market perception as the anger against everything Chinese is growing by the hour in India. © 2019 All Rights Reserved. Powered by Summit .
Load more

Recommended publications
  • Agreements That Have Undermined Venezuelan Democracy Xxxxxxxxxxxxxxxxxxxxxxthe Chinaxxxxxxxxxxxxxxxxxxxxxx Deals Agreements That Have Undermined Venezuelan Democracy
    THE CHINA DEALS Agreements that have undermined Venezuelan democracy xxxxxxxxxxxxxxxxxxxxxxThe Chinaxxxxxxxxxxxxxxxxxxxxxx Deals Agreements that have undermined Venezuelan democracy August 2020 1 I Transparencia Venezuela THE CHINA DEALS Agreements that have undermined Venezuelan democracy Credits Transparencia Venezuela Mercedes De Freitas Executive management Editorial management Christi Rangel Research Coordinator Drafting of the document María Fernanda Sojo Editorial Coordinator María Alejandra Domínguez Design and layout With the collaboration of: Antonella Del Vecchio Javier Molina Jarmi Indriago Sonielys Rojas 2 I Transparencia Venezuela Introduction 4 1 Political and institutional context 7 1.1 Rules of exchange in the bilateral relations between 12 Venezuela and China 2 Cash flows from China to Venezuela 16 2.1 Cash flows through loans 17 2.1.1 China-Venezuela Joint Fund and Large 17 Volume Long Term Fund 2.1.2 Miscellaneous loans from China 21 2.2 Foreign Direct Investment 23 3 Experience of joint ventures and failed projects 26 3.1 Sinovensa, S.A. 26 3.2 Yutong Venezuela bus assembly plant 30 3.3 Failed projects 32 4 Governance gaps 37 5 Lessons from experience 40 5.1 Assessment of results, profits and losses 43 of parties involved 6 Policy recommendations 47 Annex 1 52 List of Venezuelan institutions and officials in charge of negotiations with China Table of Contents Table Annex 2 60 List of unavailable public information Annex 3 61 List of companies and agencies from China in Venezuela linked to the agreements since 1999 THE CHINA DEALS Agreements that have undermined Venezuelan democracy The People’s Republic of China was regarded by the Chávez and Maduro administrations as Venezuela’s great partner with common interests, co-signatory of more than 500 agreements in the past 20 years, and provider of multimillion-dollar loans that have brought about huge debts to the South American country.
    [Show full text]
  • L'expérience De Valeo
    Séminaire Management de l’innovation n n n Séance du 21 novembre 2018 Comment un équipementier français organise ses activités en Chine : l’expérience de Valeo par n Édouard de Pirey n Vice-président du groupe de produits Systèmes d’électrification, Valeo En bref La Chine va vite, très vite. Usine du monde il y a deux décennies, elle est désormais une source majeure d’innovation, en particulier en matière d’intelligence artificielle, et elle bénéficie d’un marché intérieur en pleine expansion. Pour Valeo, équipementier mondialement reconnu pour ses technologies et présent en Chine depuis plus de vingt ans, le challenge est dorénavant de répondre aux exigences croissantes des constructeurs automobiles locaux, tout en s’intégrant aux nouvelles ambitions globales de l’empire du Milieu. Être chinois en Chine tout en restant un groupe international, développer localement des produits répondant aux exigences internationales les plus élevées, faire confiance et développer les compétences locales, tels sont les défis relevés aujourd’hui avec succès par Valeo Chine et ses équipes. Compte rendu rédigé par Pascal Lefebvre L’Association des Amis de l’École de Paris du management organise des débats et en diffuse les comptes rendus, les idées restant de la seule responsabilité de leurs auteurs. Elle peut également diffuser les commentaires que suscitent ces documents. Le séminaire Management de l’innovation est organisé avec le soutien de la Direction générale des entreprises (ministère de l’Économie et des Finances) et grâce aux parrains de l’École de Paris du management : Algoé 1 • Carewan 1 • Conseil régional d’Île-de-France • Danone • EDF • Else & Bang • ENGIE • FABERNOVEL • Fondation Roger Godino • Groupe BPCE • Groupe Caisse des Dépôts • Groupe OCP • GRTgaz • HRA Pharma 2 • IdVectoR 2 • IPAG Business School • L’Oréal • La Fabrique de l’industrie • MINES ParisTech • Ministère de l’Économie et des Finances – DGE • RATP • Renault-Nissan Consulting • SNCF • Thales • UIMM • Ylios 1 1.
    [Show full text]
  • Package Africa*
    Best automotive diagnostic tool on market! Date: 2021.09.28 Package Africa* List of supported car models *In case of programming of mileage or motohours, the software may be used only for repair purposes. However, in certain countries, the change of a value of an odometer (counter) or interference in correctness of his indications is prohibited under the threat of the penalties. In accordance with article 306a of the polish penal code, that is: “who changes the indica tion of the odometer of a motor vehicle or interferes in the correctness of its measurement is subject to imprisonment from 3 months to 5 years. The same penalty shall apply to anyone who commits another person to perform an act referred above.” CARS\ACURA\93C46 CARS\ACURA\93C56 V1 CARS\ACURA\93C56 V2 CARS\ACURA\ILX 93C66 CARS\ACURA\INTEGRA 93C66 CARS\ACURA\MDX\2000-2006 93C56 V1 CARS\ACURA\MDX\2000-2006 93C56 V2 CARS\ACURA\MDX\2007-2013 93C76 CARS\ACURA\MDX\2014... 93C66 CARS\ACURA\RDX\2008 93C66 CARS\ACURA\RDX\2013 93C66 CARS\ACURA\RDX\2019 93C86 CARS\ACURA\RDX\93C56 CARS\ACURA\RDX\93C66 CARS\ACURA\RL 93C66 CARS\ACURA\RSX\93C46 CARS\ACURA\RSX\93C66 CARS\ACURA\TL\93C46 CARS\ACURA\TL\93C66 CARS\ACURA\TL\93C86 CARS\ACURA\TSX\93C46 CARS\ACURA\TSX\93C66 CARS\ACURA\TSX\93C86 CARS\ALFA\147\147 93C86 CARS\ALFA\159\159 93C86 CARS\ALFA\166\166 2002... 93C56 CARS\ALFA\BRERA\BRERA 93C86 CARS\ALFA\ECU\EDC15 24C02 V1 CARS\ALFA\ECU\EDC15 SP08 CARS\ALFA\ECU\EDC16 95160 CARS\ALFA\ECU\EDC16 95640 CARS\ALFA\MITO\MITO 24C16 CARS\AUDI\A2 Page 1 Best automotive diagnostic tool on market! Date: 2021.09.28 CARS\AUDI\A3\(8L0) 6/1999...\Directly MM HC12 CARS\AUDI\A3\(8L0) 6/1999...\MAGNETI MARELLI CARS\AUDI\A3\(8L0) 6/1999...\VDO CARS\AUDI\A3\(8L0) 1996-5/1999\UK-NSI 93C56 CARS\AUDI\A3\(8L0) 1996-5/1999\VDO CARS\AUDI\A3\(8P0) 2003..
    [Show full text]
  • Chinese Carmakers Slash Sales Targets
    16 | MOTORING Monday, March 23, 2020 HONG KONG EDITION | CHINA DAILY Nio bullish about its Short Torque BYD transforms lines business performance to support masks Many companies in China have transformed their businesses to despite coronavirus cater to the rising demand for masks amid the coronavirus epi- demic, and leading new energy By LI FUSHENG vehicle manufacturer BYD has [email protected] joined them. On Feb 17, BYD pro- duced its first batch of masks. Chinese electric car startup We are pleased to Each of its production lines can Nio is confident about its see encouraging make 50,000 masks a day, and in prospects this year despite the total five million masks and coronavirus outbreak, expecting results to date, and 300,000 bottles of disinfectant its gross profit margin to become expect around 35 can be made on a daily basis, positive in the second quarter. making the company one of the “Based on the current trend, percent expense biggest mask manufacturers in we would hope the daily new reduction compared the world. The company plans to order rate to return to the level of expand its production lines to a last December in April,” said to the prior quarter daily capacity of up to 10 million William Li, founder and chair- even under the masks. The masks will also be man of Nio, on an earnings call pressure of the provided to other countries hit last week. hard by the virus, after meeting He expected production, outbreak.” GAC showcases its Aion LX model in Shenzhen, Guangdong province last July.
    [Show full text]
  • Chinese Investment in Europe: Corporate Strategies and Labour Relations
    European Trade Union Institute Bd du Roi Albert II, 5 1210 Brussels Belgium +32 (0)2 224 04 70 [email protected] www.etui.org Chinese investment in Europe: corporate strategies and labour relations Edited by Jan Drahokoupil Chinese investment in Europe: China’s global outward foreign direct investment (FDI) has increased substantially over the corporate strategies last decade, with Europe as a key destination. The upsurge in Chinese outward FDI indicates a rebalancing of global political-economic relations, with China and its companies acquiring new and labour relations roles and gaining economic power. — Bringing together research on the rise of Chinese multinational companies and their activities in Europe, this book focuses on the business strategies of Chinese investors and on employment Edited by relations in Chinese-owned companies in Europe. It addresses the topic on three levels: it Jan Drahokoupil analyses the emergence of major ‘challenger multinationals’ that have risen from a peripheral position to become global market leaders, maps the patterns of Chinese investment in Europe, and includes case studies that show the diversity of these investments. The book aims to provide a holistic overview of Chinese activities in Europe, with individual chapters focusing on key sectors and covering the dierent types of investment across the continent. Chinese investment in Europe: in Europe: Chinese investment relations and labour strategies corporate by Jan Drahokoupil Edited D/2017/10.574/16 ISBN: 978-2-87452-454-7 Chinese investment in Europe: corporate strategies and labour relations Chinese investment in Europe: corporate strategies and labour relations — Edited by Jan Drahokoupil Brussels, 2017 © Publisher: ETUI aisbl, Brussels All rights reserved Print: ETUI Printshop, Brussels D/2017/10.574/16 ISBN: 978-2-87452-454-7 (print version) ISBN: 978-2-87452-455-4 (electronic version) The ETUI is financially supported by the European Union.
    [Show full text]
  • Automotive in South Asia from Fringe to Global
    Automotive in South Asia From Fringe to Global Extended Version of the Industry Case Study Done for: South Asia’s Turn Policies to Boost Competitiveness and Create the Next Export Powerhouse Priyam Saraf October, 2016 THE WORLD BANK GROUP . Acknowledgements: This case study was authored by Priyam Saraf ([email protected]), an Economist with the Trade & Competitiveness Global Practice of the World Bank Group. Michel Bacher, auto sector advisor, provided invaluable industry inputs on benchmarking with China, Vietnam, and Republic of Korea. The author is grateful to Vincent Palmade (Lead Economist, World Bank Group) for his excellent inputs and guidance throughout the process. The author would like to acknowledge the valuable comments made by the peer reviewers: Uri Dadush (Carnegie Endowment for International Peace), Navin Girishankar (World Bank Group), Pravin Krishna (Johns Hopkins University), and Shubham Chaudhuri (World Bank Group). Comments provided by Martin Rama, William Maloney, Esperanza Lasagabaster, Sanjay Kathuria, Denis Medvedev, Mike Ferrantino, Sebastian Saez, Daria Taglioni, Paramita Dasgupta, Amjad Bashir, and Jana Malinska from the World Bank and Emmanuel Pouliquen, Shamsher Singh, Arvind Srinivasan and Ramesh Ramanathan from the International Financial Corporation (IFC) helped improve the paper. Deeksha Kokas, Atisha Kumar and Lucia Garcia Velazquez provided superb research support. The author would like to acknowledge the many automotive firms and related public and private organizations that gave us their precious
    [Show full text]
  • State of Automotive Technology in PR China - 2014
    Lanza, G. (Editor) Hauns, D.; Hochdörffer, J.; Peters, S.; Ruhrmann, S.: State of Automotive Technology in PR China - 2014 Shanghai Lanza, G. (Editor); Hauns, D.; Hochdörffer, J.; Peters, S.; Ruhrmann, S.: State of Automotive Technology in PR China - 2014 Institute of Production Science (wbk) Karlsruhe Institute of Technology (KIT) Global Advanced Manufacturing Institute (GAMI) Leading Edge Cluster Electric Mobility South-West Contents Foreword 4 Core Findings and Implications 5 1. Initial Situation and Ambition 6 Map of China 2. Current State of the Chinese Automotive Industry 8 2.1 Current State of the Chinese Automotive Market 8 2.2 Differences between Global and Local Players 14 2.3 An Overview of the Current Status of Joint Ventures 24 2.4 Production Methods 32 3. Research Capacities in China 40 4. Development Focus Areas of the Automotive Sector 50 4.1 Comfort and Safety 50 4.1.1 Advanced Driver Assistance Systems 53 4.1.2 Connectivity and Intermodality 57 4.2 Sustainability 60 4.2.1 Development of Alternative Drives 61 4.2.2 Development of New Lightweight Materials 64 5. Geographical Structure 68 5.1 Industrial Cluster 68 5.2 Geographical Development 73 6. Summary 76 List of References 78 List of Figures 93 List of Abbreviations 94 Edition Notice 96 2 3 Foreword Core Findings and Implications . China’s market plays a decisive role in the . A Chinese lean culture is still in the initial future of the automotive industry. China rose to stage; therefore further extensive training and become the largest automobile manufacturer education opportunities are indispensable.
    [Show full text]
  • GREAT WALL MOTOR COMPANY LIMITED (A Joint Stock Company Incorporated in the People’S Republic of China with Limited Liability) (Stock Code: 2333)
    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 長 城 汽 車 股 份 有 限 公 司 * GREAT WALL MOTOR COMPANY LIMITED (a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 2333) ANNOUNCEMENT OF AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019 The board of directors (the “Board”) of Great Wall Motor Company Limited (the “Company”) is pleased to announce the audited results of the Company and its subsidiaries for the year ended 31 December 2019. This announcement, containing the full text of the 2019 Annual Report of the Company, is prepared with reference to the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to preliminary announcements of Annual Results. The Company’s 2019 Annual Report will be available for viewing on the websites of The Stock Exchange of Hong Kong Limited at www.hkexnews.hk and of the Company at www.gwm.com.cn. Printed version of the Company’s 2019 Annual Report will also be delivered to the Company’s shareholders. By order of the Board Great Wall Motor Company Limited Xu Hui Company Secretary IMPORTANT NOTICE I. The Board, the Supervisory Committee and the directors, supervisors and senior management of the Company warrant that the contents of this annual report are true, accurate and complete and do not contain any false representations, misleading statements or material omissions, and jointly and severally take legal liability for its contents.
    [Show full text]
  • 2009-Mmrc-269
    MMRC DISCUSSION PAPER SERIES No. 269 The Role of International Technology Transfer in the Chinese Automotive Industry Zejian Li, Ph.D. Project Research Associate Manufacturing Management Research Center (MMRC) Faculty of Economics, THE UNIVERSITY OF TOKYO July 2009 東京大学ものづくり経営研究センター Manufacturing Management Research Center (MMRC) Discussion papers are in draft form distributed for purposes of comment and discussion. Contact the author for permission when reproducing or citing any part of this paper. Copyright is held by the author. http://merc.e.u-tokyo.ac.jp/mmrc/dp/index.html The Role of International Technology Transfer in the Chinese Automotive Industry Zejian Li, Ph.D. (E-mail: [email protected]) Project Research Associate Manufacturing Management Research Center (MMRC) Faculty of Economics, THE UNIVERSITY OF TOKYO May 2009 Abstract The so called Independent Chinese Automobile Manufacturers (ICAMs), such as CHERY, Geely and BYD, emerged at the end of 1990's as new entrants to Chinese passenger vehicle market and have achieved remarkable growth. The phenomenon of these autonomous Chinese Automakers is drawing increasing attention not only from academia but also from business and government circles. This paper attempts to clarify the relationship between emergence of ICAMs and International Technology Transfer. Many scholars indicate the use of outside supplies (of engines and other key-parts), as a sole reason for high-speed growth of ICAMs. However, the internal approach, at a level of how companies act, is also necessary to outline all the reasons and factors that might contribute to the process. This paper, based on organizational view, starts from historical perspective and clarifies the internal dynamics of the ICAMs.
    [Show full text]
  • Inquiry Report
    Australia’s Automotive Productivity Commission Manufacturing Industry Inquiry Report No. 70, 31 March 2014 Commonwealth of Australia 2014 ISSN 978-1-74037-478-1 ISBN 1447-1329 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, the work may be reproduced in whole or in part for study or training purposes, subject to the inclusion of an acknowledgment of the source. Reproduction for commercial use or sale requires prior written permission from the Productivity Commission. Requests and inquiries concerning reproduction and rights should be addressed to Media and Publications (see below). This publication is available from the Productivity Commission website at www.pc.gov.au. If you require part or all of this publication in a different format, please contact Media and Publications. Publications enquiries: Media and Publications Productivity Commission Locked Bag 2 Collins Street East Melbourne VIC 8003 Tel: (03) 9653 2244 Fax: (03) 9653 2303 Email: [email protected] General enquiries: Tel: (03) 9653 2100 or (02) 6240 3200 An appropriate citation for this paper is: Productivity Commission 2014, Australia’s Automotive Manufacturing Industry, Inquiry Report No. 70, Canberra. JEL code: L620 The Productivity Commission The Productivity Commission is the Australian Government’s independent research and advisory body on a range of economic, social and environmental issues affecting the welfare of Australians. Its role, expressed most simply, is to help governments make better policies, in the long term interest of the Australian community. The Commission’s independence is underpinned by an Act of Parliament. Its processes and outputs are open to public scrutiny and are driven by concern for the wellbeing of the community as a whole.
    [Show full text]
  • GWM Announces the Global Premier of Haval Concept H & the India
    PRESS RELEASE GWM announces the Global Premier of Haval Concept H & the India debut of its Concept Vehicle – Vision 2025 Greater Noida, 5th February 2020: Great Wall Motors, China’s largest SUV manufacturer, today globally premiered its Haval Concept H & announced the India debut of the concept vehicle – Vision 2025, during the press conference organized at Auto Expo – The Motor Show 2020. Emphasizing on the theme of Intelligent Mobility Redefined, GWM had on display among other models - Haval: H9, F7, F7x, F5 and the GWM EV: iQ & R1. At the GWM pavilion on display was a functional area that had a showcase of Lithium Ion Battery, Haval Intelligent Home, Haval Intelligent Safety Display, and Great Wall Autonomous EV. Over the past decade, GWM has invested more than 1.5 billion USD for research the development of cutting-edge technologies such as new energy, intelligent network connection and autonomous driving, and build exclusive platforms and product lineup for new energy vehicles. GWM plans to invest an estimated total of 1 billion USD (approx. INR 7000 cr) in India in a phased manner, covering manufacturing plant, vehicle research and development, production of power batteries and electric drives, vehicle and component manufacturing. At the same time, it plans to provide estimated 3,000 direct employment in a phased manner. Taking the opportunity of the Auto Expo 2020, GWM today made India Debut of its Haval and GWM EV brands and hopes to offer high technology premium products to Indian consumers, and also contribute to Govt vision of a pollution free renewable energy based society.
    [Show full text]
  • Knowing Where It's Going Before It Gets There
    Knowing where it’s going before it gets there. Innovation. It starts with a strategy. From customer-led innovation to creating a corporate culture of innovation, the key to success begins with a well-defined innovation strategy. It can mean the difference between being a leader or falling behind. Today’s fast-paced technological advancements and business model innovations are changing the way companies bring value to their customers. Automotive companies that learn to industrialize innovation to create repeated, scalable breakthroughs will be the front runners in the global marketplace—from talent acquisition to commercialization. To gain additional insight on innovation strategies for your organization and other issues important to your company or see the latest automotive innovation study The highway to growth: Strategies for automotive innovation, visit www.pwc.com/auto. © 2013 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/ structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Knowing where it’s going before it gets there. Innovation. It starts with a strategy. From customer-led innovation to creating a corporate culture of innovation, the key to success begins with a well-defined innovation strategy. It can mean the difference between being a leader or falling behind. Today’s fast-paced technological advancements and business model innovations are changing the way companies bring value to their customers. Automotive companies that learn to industrialize innovation to create repeated, scalable breakthroughs will be the front runners in the global marketplace—from talent acquisition to commercialization.
    [Show full text]