American auto maker General Motors today said it will enter the Indian commercial vehicles market through a partnership with China's Shanghai Automotive Industry Corporation (SAIC).
"General Motors has entered into a collaboration with SAIC to develop and manufacture commercial vehicles and other competitive products for India and export markets," the firm said in a statement.
The tie-up will give GM India, the company's subsidiary in India, access to mini-commercial vehicles and other products from the stable of GM’s joint ventures in China, it added.
"These will be produced at GM India’s Talegaon and Halol plants alongside GM’s portfolio of models for India and global markets," it added.
The statement, however, did not clarify on reports of SIAC picking up 50 per cent stake in GM India. It said: "The collaboration is expected to be finalised shortly."
"This (the tie-up) will give us an opportunity to utilise and expand our manufacturing capacities as we introduce additional products that are tailored to the needs of local vehicle buyers and local driving conditions," GM India President and Managing Director Karl Slym said.
Commenting on the development, GM International Operations President Nick Reilly said 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.
