Chinese Firm to Own 50 Percent Stake in GM India

Saturday 31 October 2009, 00:00 AM by Satish Kalepu

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.

Chinese Firm to Own 50 Percent Stake in GM India | CarTrade.com

“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.

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