China’s largest carmaker, Shanghai Automotive Industry Corporation (SAIC), may soon buy a stake in General Motors (GM) India. The joint venture will involve sourcing of components from China, and assembling Shanghai Auto’s light trucks at GM’s Talegaon plant in India. SAIC is one of GM’s largest partners in China, and is keen on establishing its presence in India – the second-fastest growing auto market in the world. The alliance will help GM India expand its portfolio in the country by entering the profitable light trucks segment. The company currently sells only passenger cars in India.
Mr P Balendran, the Vice President of GM India, said that GM had ongoing collaborations with Chinese firms like SAIC, SGM and Wuling. He said that the company was evaluating opportunities to leverage its partners’ strengths in technology and product introductions wherever possible.
Analysts say that the LCV segment in India has been seeing very consistent growth over the past few months, and that the market is large enough to accommodate new players. Tata Motors’s Ace is currently the leader in the segment, followed by Mahindra & Mahindra and Piaggio products.
