Friday, January 08, 2010: 03:44:08 PM

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GM and SAIC collaborate for the Indian markets

General Motors (GM) and SAIC, a Chinese automobile manufacturing firm, have recently entered a joint venture to strategise for sales in Indian markets. The JV will focus on retailing small cars and light trucks in Indian markets. Both the companies will have equal control of the JV, with each investing $50 million as the opening capital.



Worked out as a model to tap the small auto segment in Asia Pacific, the JV will initially focus on Indian markets. According to the terms and conditions of the deal, 50 per cent of GM India will be owned by SAIC and the prime manufacturing facilities of GM in India will be located at Halol and Talegaon.

According to Nick Reilly, Executive VP, GM, the JV will involve a total investment of around $650 million, half of which will be contributed by GM in terms of its manufacturing facilities and sales distribution network in India. GM India will also select automobile models from GM's international portfolio and car models from SAIC to sell in India. It is expected that the alliance will strengthen the position of SAIC in India and will largely assist GM India in acquiring a substantial share of the automobile market in India.

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