SAIC Motors is one of the biggest automobile manufacturer in China. It is planning to enter India to make vehicles. It is looking to buy the General Motors Halol Plant in Gujarat. General Motors will be evacuating the Halol plant in Gujarat and shift its operations completely into the Talegaon plant in Maharashtra. Now China’s SIAC are in the advanced stages of negotiations to buy this plant from GM.
GM and SAIC are already partners in China and SAIC also holds some minor share in GM India’s operations. This gave them an opportunity to enter India by occupying the GM plant in Gujarat.
If this deal finalizes then SAIC will be the first Chinese manufacturing company to enter India. They will be manufacturing vehicles at Gujarat plant based on contract with GM. It is mentioned that SAIC will be manufacturing GM vehicles that are already being manufactured at that plant. So, SAIC will be manufacturing GM Tavera, Enjoy and Cruze sedan if they enter India.
According to sources, SAIC may retain majority of the workers at the Gujarat plant and after getting control of the Halol plant they might sell their stake in GM India. The two companies have also involved the Gujarat government officials in this matter. GM is also trying to ensure that the benefits given by the Gujarat government in the form of fiscal incentives will be passed to the new buyer too.
Although GM is a relatively old player in the Indian market, it could not create a good impact in the Indian automotive Industry after the Tavera scam. They are at present holding around 1.2% market share in the total Industry. GM is trying to invest around 6,400 crores in India and also planning to launch 10 new vehicles under the ‘Chevrolet badge’ over the coming years.