GREAT Wall Motor has agreed to buy General Motors’ (GM) car plant in India, the companies said Friday, as the Chinese automaker expands overseas amid slowing domestic demand.

The deal, which is expected to be completed by the second half of 2020, will jumpstart Great Wall’s plans to build and sell cars in India and bring to an end GM’s manufacturing operations in the country.

People aware of the deal said earlier Friday that the two companies had agreed on the sale, with one of the sources adding that Great Wall is likely to pay around US$250 million to US$300 million to acquire the plant.

“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,” Liu Xiangshang, vice president, global strategy at the Chinese automaker said.

Great Wall, one of the biggest sellers of sports-utility vehicles (SUV) in China, plans to enter India with its Haval and electric vehicle brands and will announce detailed plans at the Delhi auto show in February, Liu said in the statement.

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 said.

Although car sales in India are also 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. (SD-Agencies)