US-based General Motors and China’s Great Wall Motor have failed to conclude the deal for the former’s Pune-based plant following the expiry of the term sheet on June 30.

The Chinese SUV maker reportedly planned to purchase the GM plant for $300 million which would have become the base for its proposed India operations. The deal, however, got stuck in pending regulatory approvals.

General Motors said it will continue to search for a buyer for the plant which can even host companies not engaged in the automotive space.

“We have been unable to obtain the required approvals within the time frame of the deal. The term sheet for the sale of the Talegaon site has previously been extended. Our strategy in India remains unchanged and we will now explore further options for the sale of the site,” a spokesperson of General Motors said.

Crackdown on China Inc

The Indian government had put curbs on Chinese investment following a bloody standoff with China as well as to avert hostile takeovers of Indian firms. Great Wall Motor joins the list of Chinese automobile companies who have found it tough to enter the Indian market. Changan Automobile and Haima are the other brands.

General Motors stopped manufacturing cars in India in 2017 after incurring losses in most of the years in the country. It had sold the older of its two plants, located in Gujarat, to SAIC, which currently makes SUVs there under the British brand MG Motor.

While new Chinese entrants have faced a roadblock in India, other Chinese automotive companies such as SAIC, Beiqi Foton and BYD have entered and expanded in India, including through partnerships. Foton has an alliance with Haryana-based PMI Electro, while SIAC and BYD sell cars directly through a subsidiary.

In addition to General Motors, in the recent years, India has witnessed the exit of a number of globally renowned brands such as Ford, Fiat, Harley-Davidson (later joined hands with Hero MotorCorp), Datsun, UM Motorcycles and Cleveland Cyclewerks.

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