Minivans could be launched in India by GM's China partner

(chinatrucks.com, Oct. 23, 2009)The Chinese interest in the Indian automobile scene is getting keener by the day. There have been companies like Chery Automobile, China FAW Group, Great Wall Motor Co and Zotye Auto who have been looking to get a foothold here in India. Very recently, media reports indicated that Shanghai Automotive Industry Corporation (SAIC) which anyway plays a greater role with GM in the Chinese market is now tipped to purchase stake in GM India's Talegaon plant.

Now there are reports that different product categories would see their entry in the Indian motor landscape. General Motors' Chinese joint venture company, SAIC-GM-Wuling Automobile is now said to be looking at the possibility of making inroads into the Indian car market with its minivans. Set up in 2002, this JV between General Motors, Shanghai Automotive Industry Corporation (SAIC) and Wuling Automobile Co. Ltd. currently makes low cost mini trucks, minivans and small cars for the Chinese market.

Jonathan Browning, VP - global sales & marketing, GM, was quoted as saying to the press, "The brand is well-suited for the Indian market. It's definitely an opportunity for us to launch these minivans in the country, with product adjustments. Entering the light commercial vehicle market is the most logical step to strengthen our portfolio.” It is to be mentioned that SAIC, partnered with GM to form Shanghai GM, SAIC-GM-Wuling Automobile and the Pan-Asia Technical Automotive Center. So if the deal is cracked with GM Indian arm, it well enable SAIC to get an immediate access to the Indian market for its products. There are several other projects being evaluated which include a wide range of models from China, but nothing has been confirmed yet.

However, P. Balendran, vice-president, General Motors India, in an official communiqué to the media said last week had categorically maintained, "The story is speculative and we don't comment on speculative stories. What I have told the ET reporter is that we have ongoing collaborations with a number of partners in various countries. In China too, we have partnerships with SAIC, SGM, Wuling etc. 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." So, it is a wait and watch scenario as far as this launch is concerned.

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