China's Shanghai Automotive Industry Corporation Group (SAIC) and General Motors Company, which have recently set up a US$100 million joint venture in Hong Kong to focus on the Asian markets, including India could be toying with the plan to explore and launch an entry-level low-cost car for the Indian market.
The A1 segment car which could be positioned below Spark and cost anywhere between US$ 3,500-4,000 as per estimates.However, industry sources claim that though GM India has no immediate plans for its entry-level low cost car, but if it’s launched, it will be rolled out from its Talegaon unit and would be catering to a number of emerging markets. The design inputs of the car are expected to be taken from India. The car may also be positioned in similar markets like India including Latin America, Eastern Europe, Africa and even possibly China.
“The formation of this joint venture which we expect to be finalised in the next three months will help GM India take SAIC’s expertise in manufacturing cost-effective small cars and vans and use it to develop suitable products for the domestic market. The first offering from this partnership will be one-tonne passenger mini vans,” said P. Balendran, director & vice president (corporate affairs) of GM India. Cars built at GM Indian facilities would also be exported.
SAIC and General Motors, US, which has just announced the formation of a 50:50 joint venture exclusively to cater to the Indian market and to South East Asian countries., has christened the company General Motors SAIC Investment Ltd (GMSIL) and will be based in Hong Kong. Based on the automotive industry’s long-term potential for growth in India, SAIC and GM have formulated a joint strategy for investment in the country. They will utilise GM’s two vehicle manufacturing facilities (at Talegaon near Pune and Halol near Baroda) and a powertrain facility in India, and GM’s nationwide distribution network. However, the first vehicle produced in collaboration with Chinese automaker Shanghai Automotive Industry Corporation (SAIC) would be a one-tonne light commercial vehicle (LCV). The joint venture would also look at introducing other SAIC products including sports utility vehicles and cars at a later date.
It is to be mentioned that SAIC’s product line-up in China ranges from low-cost small cars and multipurpose vehicles to expensive sedans. SAIC sells the Roewe brand of cars, which are broadly midsize luxury sedans, and a premium-end sports coupe under the MG brand. Under its partnership with GM, it manufactures and sells GM’s Buick, Cheverolet, Cadillac and Saab car brands, and with that under Volkswagen and Skoda, sells a complete range of cars and SUVs. SAIC also manufactures large commercial vehicles like buses.
No Comments Yet ! Be The First To Comment
Want to sell/purchase Vehicles