Rumors are flying thick and fast in the Chinese media that SAIC Motor has bought a controlling stake in General Motors India’s Talegaon plant and is the biggest shareholder of this greenfield facility, which can produce 140,000 units a year.
According to company sources, SAIC has just finished formalities on this deal, and a public announcement can be expected soon.
In China, SAIC partnered with GM to form Shanghai GM, SAIC-GM-Wuling and the Pan-Asia Technical Automotive Center.
SAIC also is allied with the Volkswagen Group in the Shanghai VW joint venture and makes a wide range of products from commercial vehicles to minicars.
By joining hands with GM India, SAIC has immediate access to the India market for its products. According to sources, the first model to come out of the Talegaon plant from the new shareholders will be an SAIC-GM-Wuling minicar.
There are several other projects being evaluated, which include a wide range of models from China, but nothing has been confirmed. GM India is silent on the subject.