General Motors has agreed to sell its Talegaon manufacturing facility to Chinese automaker Great Wall Motors (GWM). This signals the end of GM's manufacturing operations in the country. The acquisition is part of the Chinese company’s plans to expand its operations as it faces slowdown in the domestic market.

While the two companies did not disclose the deal size, a Reuters report said Great Wall is likely to pay about $250-300 million to acquire the plant.

Under a binding term sheet signed on Thursday, the GM India legal entity, which includes the Talegaon facility, will be transferred to GWM.

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,” said Liu.

“It is also an important measure to respond positively to the Indian government’s national strategy of vigorously advocating Make In India, Digital India and a ‘strong focus on clean energy in India’ and building a new India vision,”

Great Wall Motors said its investment will create more jobs, including direct and indirect employment, enhance skill level in the auto industry; promote the development of the local supply chain, R&D and related industries; and contribute more profits and taxes to the government of India and the government of Maharashtra. The Chinese company will officially debut its Haval brand and GWM EV at the Delhi International Auto Show, and unveil its Indian market plan.

GM will provide a separation package and transition support for impacted employees, as well as an orderly transition for partners. The transaction is expected to close in the second half of this year.

Chevrolet will continue to honour all warranties and provide after-sales support, including ongoing service and parts requirements for existing customers in India. GM had earlier sold its other plant to another Chinese player SAIC, where it builds cars under its British brand, MG Motor.

Great Wall Motors has more than 70 holding subsidiaries and more than 60,000 employees. Up to now, Great Wall Motors has sold more than one million vehicles yearly for four consecutive years. In addition to China, Great Wall Motors has covered more than 60 countries and regions such as Russia, South Africa and Australia, and the overseas network