Chinese Firm to Own 50 Percent Stake in GM India

Chinese companies are aggressively planning to enter the Indian market. Shanghai Automotive Industry Corporation (SAIC) is expected to own 50 percent stake in the General Motors India which will be help General Motors to source components from China and SAIC will assemble light trucks in India. So far financial details of the deal are yet not available but it is expected that a member of SAIC will also be offered a position in the GMI Board.

“This gives us an opportunity to widen our product portfolio and introduce competitive products in the countries we operate. We keep announcing tie-ups whenever we sign any agreement with our partners,” said GM India spokesman P Balendran. He refused to confirm any developments regarding the Chinese ownership in the company.

General Motors India (GMI) currently manufactures Chevrolet brand of cars that includes Aveo, Aveo-Uva, Spark and Tavera, Captiva, Cruze, and Optra Magnum. The deal of SAIC and General Motors is expected to face some political opposition as recently the government has objected to Chinese investments in India as India-China relationships have hit choppy waters.

• Auto Expo 2012: Images of the recently unveiled Chevrolet MPV Enjoy           January 25, 2012
• GM - The largest automaker delivered 9 million vehicles in 2011           January 21, 2012
• GM to make next-generation Impala at its Oshawa, Ontario plant           December 30, 2011
• General Motors to expand its base in China           December 10, 2011
• GM offers repurchasing Chevrolet Volt from customers           December 05, 2011
• General Motors India wins ‘National Safety Award 2012’ for the 3rd consecutive year           November 30, 2011
• Auto companies crippled by falling rupee; General Motors, Toyota plans price hike           November 24, 2011
• General Motors and Toyota mull car price hike as depreciating rupee shrink margins           November 23, 2011
• General Motors India sales surge marginally in October 2011           November 02, 2011
• General Motors sales surge 17.35 percent in September           October 05, 2011
• General Motors plans to exhume 5 new cars by 2014 in India           September 27, 2011
• GM India to review vehicle prices next month, a small hike is expected           September 23, 2011
• GM Motors’ Hybrid Encounters Chinese Intervention           September 07, 2011
• GM and LG join hands           August 26, 2011
• GM joins hands with LG to develop electric cars           August 26, 2011