General Motors India is all set to enter a joint venture with Shanghai Automotive Industry Corporation (SAIC), to assemble the Chinese automaker’s light trucks in India. According to media reports, SAIC is likely to buy a 50 per cent stake in GM India, which may go up in the future. GM already has an alliance with SAIC in China, which also includes Wuling Auto. The Indian JV, if it comes through, will produce Wuling series mini-trucks at GM’s Talegaon plant near Pune.
The JV will benefit GM India by giving it easier access to cheap auto components from China, and also by helping it expand its product portfolio and market presence. For SAIC, it will be a quick and easy way to establish its presence in India, the world’s second fastest growing auto market. The Talegaon plant already has all automotive infrastructure in place, which the Chinese auto giant can capitalize on. After introducing the Wuling series trucks, SAIC is also expected to bring passenger cars from its Roewe range to India.
Shanghai Auto may buy 50 per cent stake in GM India
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