SAIC (Shanghai Automotive Industry Corporation) is GM’s partner in China and also owns a stake in GM India. SAIC plans to take over GM’s Halol plant in Gujrat. GM India is planning on shutting down it’s Gujrat plant as it intends to direct all its effort towards its Talegaon plant.
SAIC is in talks with GM India and Gujrat government officials to take over the plant. The plant has an annual capacity of 1.1 lakh units a year and currently has a staff of 1,100 workers. This would give SAIC a direct gateway into the country. They would use this plant to contract manufacture vehicles for other companies and even introduce their own Chinese vehicles here.
This would be a huge opportunity for them to enter the Indian market, which is only growing year on year. Being the first Chinese company, they’d have the first person advantage in that area. They wouldn’t have to go through the tedious process of setting up their own plant as they’d have it ready in Gujrat.