New Delhi: General Motors has entered into a collaboration with Shanghai Automotive Industry Corporation (SAIC) to develop and manufacture commercial vehicles and other competitive products for India and export markets.
This tie up, which is expected to be finalized shortly, will give GM India access to mini-commercial vehicles and other products from the stable of GM’s joint ventures in China. These products will be produced at GM India’s Talegaon and Halol plants alongside GM’s portfolio of models for India and global markets.
The first product, most probably a one tonne light commercial vehicle , is expected to be launched by 2011. This is likely to be produced at GM's Halol plant. The components will be sourced mostly from India. "This is an excellent opportunity for GM India and the tie up will enable us to offer new and exciting products faster and in a greater number of segments to our valued customers in India. This will also give us an opportunity to utilize and expand our manufacturing capacities as we introduce additional products that are tailored to the needs of local vehicle buyers and local driving conditions. In addition, it will also create more employment opportunities locally and generate additional revenues from exports," said Mr. Karl Slym, President and Managing Director of GM India.
General Motors currently manufactures the Chevrolet Spark, Chevrolet U-Va, Chevrolet Aveo, Chevrolet SRV, Chevrolet Optra Magnum, Chevrolet Cruze, Chevrolet Tavera and Chevrolet Captiva at its two facilities in Halol and Talegaon. It also operates R&D, Engineering & Design Centres in Bangalore. Its engine plant is also coming up at the Talegaon site and will be commissioned by the end of next year.
"By combining the outstanding resources of GM in India with those of our partners in China, Korea and across the globe, we can respond faster to the evolving domestic market than ever before and also have the products to support our export desires," he added.
"Over the past decade, GM and SAIC have created one of the world's most successful automotive industry partnerships in China and cooperation in Korea. We look forward to bringing our model for success to India, which is one of the world’s most vibrant emerging vehicle markets," said Nick Reilly, GM Executive Vice President and President of GM International Operations.
The GM-SAIC tie up follows the announcement of GM-REVA collaboration for introduction of electric vehicles to the market.
"These types of tie ups in the changing business environment will help GM India to introduce new and exciting products and give wider choice to the Indian customers in different segments going forward," the company said in a statement. "The global automotive industry is evolving quickly. We are now seeing a greater reliance on alliances and partnerships to drive industry growth," said Nick Reilly. The GM-SAIC joint venture will be headquartered in Hong Kong and will handle collaborations in different countries. Over the next three months the details of investments in the new venture will be planned. Both companies have committed an investment of US $ 100 million across the whole Asian market. |
