China’s SAIC Slated to Acquire GM’ Manufacturing Unit in India
SAIC HK, a subsidiary of China's largest auto maker Shanghai Automotive Industry Corporation (SAIC), has submitted a proposal to acquire assets of General Motors' (GM) manufacturing unit in the Indian state of Gujarat.
Both companies have appraised the Indian competition watchdog about the proposed transaction in their latest filings. SAIC HK will acquire the asset through an Indian subsidiary that is yet to be incorporated.
Like Us on Facebook
Recent media reports indicated that China's largest car manufacturer held several meetings with GM to discuss about Gujarat assets, while certain sources claimed that a final deal was sealed about a month back. GM basically operates two plants in India - one in Talegaon near Pune and other in Halol near Gujarat.
"Discussions with SAIC on the sale of Halol are progressing well. The two parties will continue to work with Governments to secure the necessary approvals. We will share any progress at the appropriate time," a spokesperson from GM India said recently.
SAIC had made a maiden entry in the lucrative Indian market in 2010 through an alliance with GM. Both companies planned to launch five made-in-China cars including a small car, a sedan, and light trucks in the Indian market. However, both companies shelved the plan halfway following a lukewarm response to their initial launches.
The Chinese company now wants to manufacture car locally for the Indian market where it plans to launch some of its marquee products within a few months. These products include Maxus, MG, Roewe, and Yuejin.
India is considered as one of the fastest growing global auto markets in the world and therefore assumes immense importance in SAIC 's ambition for a global push.