GM, China’s SAIC Motor plan India-specific tie-up

04 Dec 2009

1

General Motors and China's SAIC Motor Corp are set to announce a tie-up to expand into the Indian market later in the day today.

This would be a significant step in China's efforts to gain a foothold in one of the world's largest emerging markets for cars, posing a potential challenge to market leader Tata Motors and other commercial vehicle makers, like Ashok Leyland.

GM and SAIC - which are already in a joint venture in China - are expected to say they plan to sell some of the Chinese producer's light commercial vehicles in India, including minivans and mini-trucks, a segment dominated by domestic market leader Tata Motors.

Additionally, GM will transfer a 1 per cent stake in in Shanghai General Motors Co. to SAIC, China's biggest carmaker, ansd GM's partner in its passenger-car venture, to help Shanghai-based company consolidate its revenue.

The India venture will be based in Hong Kong and will use GM's two manufacturing facilities and a powertrain plant in India, the statement said.

GM already sells passenger vehicles in India, including the Spark, Aveo, Cruze, Optra, Captiva, and Tavera and its sales here rose 65 per cent in November over the same period a year earlier to 7,118 units.

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