Six months after the two parties signed a joint-venture contract in December 2009, the future of SAIC and GM in the Indian market finally came to light. This new company, named "GM Shanghai Automotive Hong Kong Investment Company", plans to launch in the second half of 2011. Or, in early 2012, light trucks and light commercial vehicles will be put into operation in India, in which light commercial vehicles will renovate products from SAIC-GM-Wuling.
SAIC and GM decided to use GM’s brand and sales network in India, plus two vehicle factories and one engine plant to produce and sell light trucks and light commercial vehicles. Among them, the main products of SAIC-GM-Wuling, which has achieved great success in the Chinese market, will be transformed into the Indian market. These products will be jointly developed by GM, SAIC, and Pan Asia Automotive Technology Center.
Currently, GM Shanghai Automotive Hong Kong Investment Co., Ltd. has two complete OEMs in India, Tele-gaon and Hallo, Chevrolet Sales, and Telgaon Engines, which will be put into production by the end of next year. The Hallol assembly plant has an annual production capacity of 85,000 units. The new company plans to upgrade the assembly plant. However, it is reported that it will not expand the production capacity of the plant. The main purpose is to transform it into a production base capable of producing three types of light trucks.
In GM's view, although the current sales volume of automobiles in India is only 2 million vehicles, it is very likely that it will become the "second China." At the same time, SAIC also believes that India's sales in 2015 are expected to exceed the current double, reaching 4.8 to 5 million vehicles.
Liu Xiaohai, executive vice president of Shanghai General Motors Corporation, said that the next five years will be an important moment for the joint venture company in India, hoping to get rid of the embarrassing status of the current generic brand in the Indian market only 3.5%. By 2012 or 2013, the production scale in India will be expanded to 300,000 vehicles per year. By then, India in South Asia will serve as an important export base. SAIC and GM’s joint venture products will be used to radiate to Indonesia, Malaysia and Thailand. And other Southeast Asian markets.
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