Chinese Auto Manufacturer to buy controlling stake in GM India? - Team-BHP

thermalpaste · 7th October 2009, 03:01

Shanghai Automotive Industry Corporation has supposedly bought a controlling stake in GM India. The Talegoan plant can manufacture upto 140,000 units per annum according to Autocar India.
There is a possibility that the Chinese may enter the Indian market with a 'Wuling' mini-van/pick-up truck.
It would make logical sense for the Indian government to make offset crash-test mandatory for all cars in India -- this way we are being protectionists without explicitly stating our protectionist policies

.

A Chinese company having a controlling stake in India could mean two things : Consumers aware of this fact may not consider other GM brands to be good or competitive. The Chinese may capture a small portion of the LCV market with the Wuling pick-up. Hope they don't re-christen the wuling to a chevy.

ACM · 7th October 2009, 11:12

Unlikely, unbelievable.

Have yet to receive the Oct Autocar issue but even if I were to read this would find it hard to digest.

Can some ones else substantiate this. Somehow does not ring true.

amtak · 7th October 2009, 11:30

Yes. It is mentioned in ACI October issue.

Skidrow · 7th October 2009, 11:31

GM has been looking at the success of the sub 1 tonne commercial vehicle market - the Tata Ace / Magic. THe WUling is manufactured in China in a JV and (now) exported from China. The problem for this vehicle is that the engine is much larger than the Ace/Piaggio Truk which could make it uncompetitive price wise and fuel economy wise in the Indian market.

AFAIK GM India has not been sold,Slym is still there.

Dante · 8th October 2009, 12:32

Chinese even have the Hummer under them now. I hope they don't mess it up.

ACM · 8th October 2009, 12:56

Yep received the ACI yesterday and it is in it, along with a big article about GM in China, but somehow does not seem logical and I still feel that it would not come through, considering the way Indians look at china as a brand.

shortbread · 15th October 2009, 17:46

If rumors are true it seems Shanghai Auto Industry Corporation will be buying into GM India and will have controlling stake of its new Talegaon plant. An announcement is expected soon from SAIC in this respect.
This will be a major coup by SAIC and will give them immedeate access to GMs manufacturing facility as well as its nation wide sales and service network. GM India on the other hand gets much needed financial support from a richer partner.
The reports suggest that SAIC's Wuling range of cars will be introduced in India, ä¸Šæ±½é€šç”¨äº”è± ,a range of ugly looking versa type vans in various sizes.
SAIC had earlier brought controlling stake in SangYong but abandoned the firm after the company ran into financial troubles.
It will be an interesting proposition for Indian consumers if the deal happens and Wulings are sold along with Chevrolets.

Sources:
:: AUTOCAR INDIA - CAR AND BIKE MAGAZINE ::
Rumored: Shanghai Auto Now Allied With GM India

AnonymousCoward · 15th October 2009, 19:52

Seems like only a rumour? I think the title should be updated to reflect that.

Sudan_NFS · 15th October 2009, 20:46

Basically if this happens everybody will have the doubt on the reliability and GM will lose the market.In India, china product is a cheap and use & throw with no warranty.

So GM have to be much careful in this.

arin_12 · 15th October 2009, 21:59

News is that GM has tied up with SAIC. If these chineese company comes to India and start selling product then I think most of the time our car will be in Garage/Service station. It is also a big threat for Indian Economy.

AyAn! · 21st October 2009, 01:21

GM considering expanding SAIC ties into India
With more established auto markets not showing any signs of sales growth, most of the world’s automakers are focusing their efforts developing regions. General Motors already has a strong presence in China – thanks to a tie-up with China’s SAIC Motor Corp. – and is now said to be taking aim at the Indian market.

General Motors has reportedly begun talks with SAIC to expand their operations into India. The move would see SAIC investing in General Motors India, according to India’s Economic Times.
“GM’s discussions with SAIC include business opportunities in India, but no final decision has been made on how they will cooperate,” an inside source revealed.
The move seems like a logical step for both GM and SAIC. The two automakers currently produce Cadillac, Chevrolet, Buick and Wuling vehicles in China and have been quite successful – particularly this year. SAIC’s sales have jumped 47 percent this year with GM tallying a 55 percent improvement. Moreover, most analysts expect India to knock off China as the world’s largest auto market in the coming years.

shortbread · 21st October 2009, 16:54

I think the primary GM is interested in SAIC buying a stake is the cash injection. GM has a very good small car portfolio, Spark, UVA and the upcoming new Spark. The problem GM has is selling enough cars and not the lack of models, heck they have a model in every segment.
I dont see how selling Wulings will help GM. But SAIC has played real smart, theyve used their financial power and perhaps GMs desperation for funds to good effect, overnight they get an all India network of dealers/service centres and also GMs new factory at Talegaon.

abhi1309 · 2nd November 2009, 14:40

Guys, We all know the GM India has become aggressive than ever before. They have already lined up the Beat, Spark 800cc and Spark Electric for launches one by one in the next year, enough to keep the interest in this brand alive. Don't forget the Cruze which has got good reviews and a decent number of bookings. I just saw this news.

Now this news is getting hotter than ever. Shanghai Automotive Industry Corporation (SAIC) is buying a stake in GM India. This means a lot. SAIC is a Chinese car gaint and has got manufacturing co-operation with GM and VW in China which are the two largest companies there in terms of sales. SAIC partnered with General Motors to form Shanghai GM, SAIC-GM-Wuling Automobile, and the Pan-Asia Technical Automotive Center. SAIC also partnered with Volkswagen Group in the formation of Shanghai Volkswagen Automotive. SAIC also acquired the Biritsh car maker MG Rover in 2007 and releases an upgraded Rover 750 called the Roewe.
GM sells the Spark already in China and the Beat too will sell there soon. GMI could very well source components from Chhinese suppliers at competitive prices and also it has been speculated that the Wuling range of LCV's could also make it to India. The intent of GM India could hardly have been doubted with the strong range of small cars it is going to put in the market in 2010. With this merger, there are numerous possibilities and we could only wait and watch the action. SAIC makes all the VW's and Skoda's in China. It also makes Daewoo's, Opels and numerous Buicks there in addition to the Roewe sedan. Do your math. Here is the link.. ÉÏº£Æû³µ¹¤Òµ£¨¼¯ÍÅ£©×Ü¹«Ë¾|ÉÏÆû¼¯ÍÅ|Saicgroup

Source: SAIC In GM India?

What are the implications? Can we see some more Chinese cars subsequently on our roads after this or it is just those Wuling trucks?

amtak · 2nd November 2009, 14:46

A lot of affordable vehicles from GM stables. Some good competition to Winger/Traveller and also to the Versa when Wuling comes down.

abhi1309 · 2nd November 2009, 15:30

What about cars? Any chances of newer models because I don't believe they have some genuine models of themselves. They just have tie-ups.

7th October 2009, 03:01	#1 (permalink)
thermalpaste BHPian Join Date: Aug 2008 Location: Pune Posts: 31	Chinese Auto Manufacturer to buy controlling stake in GM India? Shanghai Automotive Industry Corporation has supposedly bought a controlling stake in GM India. The Talegoan plant can manufacture upto 140,000 units per annum according to Autocar India. There is a possibility that the Chinese may enter the Indian market with a 'Wuling' mini-van/pick-up truck. It would make logical sense for the Indian government to make offset crash-test mandatory for all cars in India -- this way we are being protectionists without explicitly stating our protectionist policies . A Chinese company having a controlling stake in India could mean two things : Consumers aware of this fact may not consider other GM brands to be good or competitive. The Chinese may capture a small portion of the LCV market with the Wuling pick-up. Hope they don't re-christen the wuling to a chevy. __________________ "I want something shiny that goes from 0 to 100 in about 3 seconds." -- So I bought her a weighing scale.

7th October 2009, 11:12	#2 (permalink)
ACM BHPian Join Date: Mar 2008 Location: Mumbai Posts: 804 View My Garage	Unlikely, unbelievable. Have yet to receive the Oct Autocar issue but even if I were to read this would find it hard to digest. Can some ones else substantiate this. Somehow does not ring true. __________________ ACM Cars in the Garage: 2006 Skoda Laura L&K DSG AT- Blue, 2001 Tata Safari - Blue, 1999-2007 Daewoo Cielo 1956 Fiat - Red

7th October 2009, 11:30	#3 (permalink)
amtak Senior - BHPian Join Date: Oct 2006 Location: Mumbai - The city of Sea Link!!! Posts: 1,554 View My Garage	Yes. It is mentioned in ACI October issue. __________________ Regards, Amtak 2008 - Hero Honda Hunk 2005 - Maruti Suzuki Zen 1984 - Me

8th October 2009, 12:32	#5 (permalink)
Dante BHPian Join Date: Jun 2009 Location: Nasik Posts: 219	Chinese even have the Hummer under them now. I hope they don't mess it up. __________________ It TaKes a lOt moRe BaLLs to put a BikE 200+mPh tHan siT iN a cAr & dO iT I am a rider who's driving..

8th October 2009, 12:56	#6 (permalink)
ACM BHPian Join Date: Mar 2008 Location: Mumbai Posts: 804 View My Garage	Yep received the ACI yesterday and it is in it, along with a big article about GM in China, but somehow does not seem logical and I still feel that it would not come through, considering the way Indians look at china as a brand. __________________ ACM Cars in the Garage: 2006 Skoda Laura L&K DSG AT- Blue, 2001 Tata Safari - Blue, 1999-2007 Daewoo Cielo 1956 Fiat - Red

7th October 2009, 11:31	#4 (permalink)
Skidrow Newbie Join Date: May 2007 Location: Mumbai Posts: 5	GM has been looking at the success of the sub 1 tonne commercial vehicle market - the Tata Ace / Magic. THe WUling is manufactured in China in a JV and (now) exported from China. The problem for this vehicle is that the engine is much larger than the Ace/Piaggio Truk which could make it uncompetitive price wise and fuel economy wise in the Indian market. AFAIK GM India has not been sold,Slym is still there.

15th October 2009, 17:46	#7 (permalink)
shortbread BHPian Join Date: Apr 2008 Location: Aberdeen, UK Posts: 286	Rumour: Chinese Co. SAIC to buy into GM India!!! If rumors are true it seems Shanghai Auto Industry Corporation will be buying into GM India and will have controlling stake of its new Talegaon plant. An announcement is expected soon from SAIC in this respect. This will be a major coup by SAIC and will give them immedeate access to GMs manufacturing facility as well as its nation wide sales and service network. GM India on the other hand gets much needed financial support from a richer partner. The reports suggest that SAIC's Wuling range of cars will be introduced in India, ä¸Šæ±½é€šç”¨äº”è± ,a range of ugly looking versa type vans in various sizes. SAIC had earlier brought controlling stake in SangYong but abandoned the firm after the company ran into financial troubles. It will be an interesting proposition for Indian consumers if the deal happens and Wulings are sold along with Chevrolets. Sources: :: AUTOCAR INDIA - CAR AND BIKE MAGAZINE :: Rumored: Shanghai Auto Now Allied With GM India

15th October 2009, 19:52	#8 (permalink)
AnonymousCoward BHPian Join Date: Oct 2009 Location: Net City Posts: 80	Seems like only a rumour? I think the title should be updated to reflect that. __________________ You can't fail if you don't give up.

15th October 2009, 20:46	#9 (permalink)
Sudan_NFS BHPian Join Date: Aug 2009 Location: chennai Posts: 268	Basically if this happens everybody will have the doubt on the reliability and GM will lose the market.In India, china product is a cheap and use & throw with no warranty. So GM have to be much careful in this. __________________ Thanks Sudan

15th October 2009, 21:59	#10 (permalink)
arin_12 BHPian Join Date: Jul 2008 Location: Bangalore Posts: 357 View My Garage	News is that GM has tied up with SAIC. If these chineese company comes to India and start selling product then I think most of the time our car will be in Garage/Service station. It is also a big threat for Indian Economy. __________________ Arindam Drive Safe Drive Long Fusion(P), FIAT UNO (P), Pulsar 180, HH Splender+

21st October 2009, 01:21	#11 (permalink)
AyAn! BHPian Join Date: Oct 2008 Location: Durgapur/Kolkata Posts: 745	GM considering expanding SIAC ties to India! GM considering expanding SAIC ties into India With more established auto markets not showing any signs of sales growth, most of the world’s automakers are focusing their efforts developing regions. General Motors already has a strong presence in China – thanks to a tie-up with China’s SAIC Motor Corp. – and is now said to be taking aim at the Indian market. General Motors has reportedly begun talks with SAIC to expand their operations into India. The move would see SAIC investing in General Motors India, according to India’s Economic Times. “GM’s discussions with SAIC include business opportunities in India, but no final decision has been made on how they will cooperate,” an inside source revealed. The move seems like a logical step for both GM and SAIC. The two automakers currently produce Cadillac, Chevrolet, Buick and Wuling vehicles in China and have been quite successful – particularly this year. SAIC’s sales have jumped 47 percent this year with GM tallying a 55 percent improvement. Moreover, most analysts expect India to knock off China as the world’s largest auto market in the coming years. __________________ *The first time in my life I held a pencil...I drew something that resembled a car.*

21st October 2009, 16:54	#12 (permalink)
shortbread BHPian Join Date: Apr 2008 Location: Aberdeen, UK Posts: 286	I think the primary GM is interested in SAIC buying a stake is the cash injection. GM has a very good small car portfolio, Spark, UVA and the upcoming new Spark. The problem GM has is selling enough cars and not the lack of models, heck they have a model in every segment. I dont see how selling Wulings will help GM. But SAIC has played real smart, theyve used their financial power and perhaps GMs desperation for funds to good effect, overnight they get an all India network of dealers/service centres and also GMs new factory at Talegaon.

2nd November 2009, 14:40	#13 (permalink)
abhi1309 BHPian Join Date: Jun 2007 Location: Pune Posts: 295 View My Garage	SAIC Taking a Stake in GM India. What are the implications? Guys, We all know the GM India has become aggressive than ever before. They have already lined up the Beat, Spark 800cc and Spark Electric for launches one by one in the next year, enough to keep the interest in this brand alive. Don't forget the Cruze which has got good reviews and a decent number of bookings. I just saw this news. Now this news is getting hotter than ever. Shanghai Automotive Industry Corporation (SAIC) is buying a stake in GM India. This means a lot. SAIC is a Chinese car gaint and has got manufacturing co-operation with GM and VW in China which are the two largest companies there in terms of sales. SAIC partnered with General Motors to form Shanghai GM, SAIC-GM-Wuling Automobile, and the Pan-Asia Technical Automotive Center. SAIC also partnered with Volkswagen Group in the formation of Shanghai Volkswagen Automotive. SAIC also acquired the Biritsh car maker MG Rover in 2007 and releases an upgraded Rover 750 called the Roewe. GM sells the Spark already in China and the Beat too will sell there soon. GMI could very well source components from Chhinese suppliers at competitive prices and also it has been speculated that the Wuling range of LCV's could also make it to India. The intent of GM India could hardly have been doubted with the strong range of small cars it is going to put in the market in 2010. With this merger, there are numerous possibilities and we could only wait and watch the action. SAIC makes all the VW's and Skoda's in China. It also makes Daewoo's, Opels and numerous Buicks there in addition to the Roewe sedan. Do your math. Here is the link.. ÉÏº£Æû³µ¹¤Òµ£¨¼¯ÍÅ£©×Ü¹«Ë¾\|ÉÏÆû¼¯ÍÅ\|Saicgroup Source: SAIC In GM India? What are the implications? Can we see some more Chinese cars subsequently on our roads after this or it is just those Wuling trucks? __________________ Ford Fiesta Daewoo Matiz Hyundai Santro Premier Padmini 1983 - Sold Nano LX Booked huh!

2nd November 2009, 14:46	#14 (permalink)
amtak Senior - BHPian Join Date: Oct 2006 Location: Mumbai - The city of Sea Link!!! Posts: 1,554 View My Garage	A lot of affordable vehicles from GM stables. Some good competition to Winger/Traveller and also to the Versa when Wuling comes down. __________________ Regards, Amtak 2008 - Hero Honda Hunk 2005 - Maruti Suzuki Zen 1984 - Me

2nd November 2009, 15:30	#15 (permalink)
abhi1309 BHPian Join Date: Jun 2007 Location: Pune Posts: 295 View My Garage	What about cars? Any chances of newer models because I don't believe they have some genuine models of themselves. They just have tie-ups. __________________ Ford Fiesta Daewoo Matiz Hyundai Santro Premier Padmini 1983 - Sold Nano LX Booked huh!

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Tata looking to buy stake in MV Agusta	khanak	The International Automotive Scene	5	29th April 2008 12:03
Tata may buy stake in Ferrari	khanak	The International Automotive Scene	35	31st March 2008 11:50
Would you buy a Chinese car?	amit	The International Automotive Scene	17	30th September 2005 19:13
MG Rover Sold to Chinese Auto Company!!	Stratos	The International Automotive Scene	6	23rd November 2004 16:52