GM Buys Back Stake in Indian Venture image

GM regained control of its Indian JV by buying back most of the 50% stake it sold to SAIC Motor.

GM announced it has increased its stake in the Indian operations to 93%, a deal which shows the automaker’s confidence in the Indian market.

“Looking to the future, we will continue to actively collaborate with SAIC on product opportunities that support our aggressive growth plans in India,” GM spokesman Klaus-Peter Martin said in an email statement.

Last month GM began production of the Chevrolet Sail small car in India, part of its plan to boost sales in a market where foreign automakers have struggled. By the end of the year SAIC will also begin production of the Chevy Enjoy passenger van. In December 2009, GM and SAIC announced they have formed a 50-50 JV, after the US automaker managed to restructure its operations in the country’s bankruptcy court.

The Indian partnership includes GM’s engine plant, sales network and two assembly facilities, while SAIC offered 23.5 billion rupees, which helped the two automakers introduce more models in India, especially ultra-cheap micro minivans, buses, and small cars, built by GM with its two Chinese partners. From January to June GM’s sales in India increased 21% compared with the same period last year.