General Motors India to Launch SAIC Vehicles by End of 2012

Strategic Insights -

General Motors India announced plans to launch commercial vehicles and passenger cars from the stable of its Chinese partner Shanghai Automotive Industry Corporation (SAIC) by the end of next year. The company will invest "millions of dollars" at its Halol plant in Gujarat to manufacture light commercial vehicles (LCVs) from SAIC's stable. This move marks a significant expansion of GM India's product portfolio, offering customers a wider range of options.

Key Takeaways:

  • GM India will invest "millions of dollars" at its Halol plant in Gujarat to manufacture LCVs from SAIC's stable.
  • The company plans to launch LCVs in one-tonne capacity by the end of next year or early 2012, which could be followed by passenger cars.
  • Initially, GM India is looking at launching about three models of LCVs, with the company yet to finalize the branding of the LCVs.
  • Passenger cars from SAIC will be sold in India under the Chevrolet badge.
  • The joint venture's board structure has changed with both General Motors and SAIC having equal representation.
  • GM India will export LCVs to other markets, mainly in South America and possibly in Southeast Asia.

Statistics:

  • GM India's Halol facility has a capacity to produce 85,000 units every year.
  • The company will invest approximately US$50 million per vehicle to change the toolings on an existing plant.
  • General Motors and SAIC have a 50:50 joint venture investment company, General Motors SAIC Investment Ltd, with a total investment of about US$650 million.

Sources:

  • "General Motors India to Launch SAIC Vehicles by End of 2012" (Asia Pulse, May 28)
  • Shanghai Automotive Industry Corporation (SAIC) (SSE: 600104)
  • OEMs of South Asia.