[K7@TN14]

This is certainly not a good news. This is may be due to GWM’s viability is not met their expectation or their future strategy may have changed. However I do not think it has any impact to Indian auto segment as they have not truly set up or launch anything. Hope they are back when they see its works out for them.

[prajwalmr62]

Originally Posted by K7@TN14

However I do not think it has any impact to Indian auto segment as they have not truly set up or launch anything.

It does have an effect, because it becomes a case-study for other companies planning to set foot in India, and the existing companies planning to expand their business.

Why is it a loss? Because generally companies setting up plants want to have most of their parts locally manufactured. Which means they need to get local auto component makers, and help them get latest tech. Which in-turn improves local manufacturer's quality = better quality parts for us.

[Harjot37]

@Mods, the relevance of this thread is over, and I believe it should be closed for discussion. This has turned into a political debate, which is nonetheless not allowed on T-BHP. Trust me, I'm all for taking sides, but such anti-China sentiment prevalent on a thread hosted on this esteemed forum is a blotch on its acclaim.
Please, if I may request, remove such bitter posts for the wellness of this forum, and for the reason why we're all here- Cars and Automobiles.

[K7@TN14]

Originally Posted by prajwalmr62

It does have an effect, because it becomes a case-study for other companies planning to set foot in India, and the existing companies planning to expand their business...

Dear prajwalmr62, I completely agree with your points on the case studies, suppliers base or the business climate. However I was trying to think in a direction that the GWM’s decision to pull the plug might be because of their own priorities, strategies due to current economic situation.

The world economic currently undergoing significant stress due to COVID and Ukrainian war etc. Also some financial analysts (in morganstanley) says that there may be recession in U.S. which may have rippling effect on rest of the world. Hence it could influence a companies strategic views.

Source: https://www.morganstanley.com/ideas/...ential-how-bad

[DeepakS]

Originally Posted by chennai-indian

Disagree with you. Why should we encourage Chinese products when they do not even entertain Indian products in China? Ask Mahindra for instance. They tried to set up a manufacturing plant and sell Mahindra tractors in China. Did not work. They had to sell the plant to their JV partner and withdraw from the markets. "And the Govt doesn't want more people to own cars because there is no infrastructure & it simply won't get built." - Well, this is absolutely not true. More infra has been built over the last 7 years than the last 40 years.

The above said infra which was built is last 7 years is mostly built on highways. Those highways have made transport easier, convenient and more prompt. This was the need of the time, as the population is increasing substantially, we need great highway connectivity too.
India's urban infra, city lanes, parking lots, public places, etc are not at all up to the mark to sustain the current traffic which exists. Rural areas and tier 3 cities, we might be fine as there's ample of space for cars to move about, but it's just space, not infra. I think India needs infra first, and then a car in each home.

[mtk]

Terrible news. Loss for the customer and the employees who were fired.

Hope they find a suitable job at the earliest.

[W16rocks]

If you ask me, this is a great news, Chinese are very particular about Indian companies selling their products in China, As others have mentioned Mahindra could not set up a plant there, with Indian companies stepping up in all sectors, even in the automotive sector, Indians have made strides in safety, tech and mechanical departments.

Why should we let Chinese companies step foot in India and take Indian money to China, when we have our own manufacturers working hard to take us forward.

Everyday thousands of Chinese soldier are standing at the borders ready to march in our country and kill our brave soldiers, why should we buy Chinese cars and support their armies.

Cheers
W16rocks

[gismosin]

Economics and politics separated, It would make be beneficial for Chinese companies to invest in India and we should encourage it, here is why.

1) They might be Chinese companies but in India, they are under the law of the land, so they would mostly comply. More than many, since they know they will be under much scrutiny
2) For those of you who say "I will never buy Chinese" you, I dare say are naive. Almost every electronic you buy, there are some components from China involved.
3) Having heavily invested Chinese companies in India is only beneficial to us as we will have more leverage at the bargaining table, if the need arises. Even in communist China, money speaks, a lot of companies would loose out if things went south.
4) And remember, they are paying taxes, wages, leasing real-estate building a vendor ecosystem and also creating an army of technical people via their factories etc. Most Chinese companies began as OEM's for West and after earning enough expertise in the manufacturing process they branched out on their own.

They say politics brings out the worst in people. But perhaps, economics can bring out the best of politics.

[Kln]

My 2p -

So called "patriotism" and the propagandist 'anti China' sentiment is afforded by people when it doesn't personally affect them.

Unknown company with no products that they could buy anyway quits India before launch - 'good, why to buy Chinese!'


Well known company that makes products they use everyday (mobiles, for eg) - 'seh lenge thoda, competition is good, they're manufacturing locally, adhering to local norms, jobs are important etc etc etc'



Reality - any and every sort of regulated competition is good.

[GTO]

Mod Note: Strictly no discussions on politics or politicians please. Thanks for the support & understanding

[Mechanto]

While this is not so good news for the consumer or the employment seekers, it is fairly good news for Indian manufacturers, other existing manufacturers and the so called patriots.

I would fall under the later category, as I feel, Chinese has this ability to get into the market and then rule the market as a whole, disrupting all the local competition. For example the Mobile Phone industry. One may argue that the Indian cell phone manufacturers were not competent enough to compete with the Chinese, but we should not forget the fact that the Chinese has deep pockets. They will come out all guns blazing, which will threaten the local manufacturers.

I feel much better that GWM has packed its bag from India.

[aniketi]

Frankly speaking, I am happy. I don't want any China products to be sold here in India. As far as possible, I avoid all Chinese products, be it mobile or electronics or furniture or anything else. Just because it's cheap I won't buy any crap, low quality product from China. I know some things we can't avoid like Laptops, some electronic parts, etc. but I try my best to avoid it.

Only Chinese thing I often get is Chinese food But I highly doubt if it has any DNA of China considering the way we get Chinese food items here, LOL

[Theyota]

Originally Posted by chennai-indian

Ask Mahindra for instance. They tried to set up a manufacturing plant and sell Mahindra tractors in China. Did not work. They had to sell the plant to their JV partner and withdraw from the markets.

Mahindra had two join ventures and two plants that they ran for few years. They sold to their JV partner because they were not successful. They weren't successful because they were just another player without any offer that was not already offered by many other local players. Added to this there was no brand value like a Western country brand would have in China and it is extremely difficult for foreign company to understand the culture of Chinese retail landscape especially in the farming sector which is very much government driven due to subsidies and all that kind of stuff. It is not that the Chinese government wanted them to fail.

[anoopelias]

Originally Posted by aniketi

Just because it's cheap I won't buy any crap, low quality product from China.

Gone are those days, today China is the semiconductor manufacturing capital of the world. A big majority of Apple products are manufactured by Foxconn in China. So much for cheap and low quality products!

[kiku007]

Originally Posted by anoopelias

Gone are those days, today China is the semiconductor manufacturing capital of the world. A big majority of Apple products are manufactured by Foxconn in China. So much for cheap and low quality products!

You might as well say, "Gone are those decades.". The China is equal to cheap narrative is so old and irrelevant now. However, old habits die hard so we keep hearing that.

Have a look at the websites of GWM, Cherry, Geely or BAIC to understand how they have evolved in recent times. They aren't the cheap knockoffs from the past.

https://www.gwm-global.com/brands.html

http://zgh.com/?lang=en

https://www.cheryinternational.com

http://www.baicgroup.com.cn

Also, if people are so passionate about not buying Chinese products in a globalized economy then, it might be worth while for them to check the source of the components and the share holder details as well. It might be enlightening.

Here's the shareholder details of the Mercedes group. Make of that what you will.



https://group.mercedes-benz.com/inve...der-structure/