India is the world’s second fastest growing car market and now Chinese companies are gearing up to grab a foothold in this market before it is too late. Shanghai Automotive Industry Corporation (SAIC) is close to purchasing stakes in GM India’s Talegaon plant. SAIC already plays a role in China with General Motors. General Motors India has denied any such alliance with the Chinese car maker.
According to one of India’s leading English Dailies, SAIC is eager to establish itself in India and the alliance will cover sourcing of components from China and assembling light trucks from SAIC in India. Such alliance will also facilitate General Motors India as sourcing components from China is definitely cheaper than in India. SAIC has partnered with General Motors to form Shanghai GM in China as well as SAIC-GM-Wuling Automobile and the Pan-Asia Technical Automotive Center.
“We keep pursuing and evaluating opportunities with our partners across the globe to leverage each other's strengths for technology and product introductions. This also gives us an opportunity to widen our product portfolio in the countries we operate and meet the requirements of the local market. India is a wholly owned subsidiary of GM and we keep announcing the tie-ups whenever we sign collaboration agreements with any of our partners,” said P. Balendran, Vice-President, General Motors India. The statement does not give any definite indication of any strategic alliance between GM India and any Chinese counterpart.
Currently, Chery Automobile, China FAW Group, Great Wall Motor Co and Zotye Auto are other Chinese auto manufacturers that are trying to get foothold in India.
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