GM to co-op with SAIC for India market
One of General Motors' subsidiaries in India is planning to introduce China made light trucks before the end of 2011 to meet the rapid growing freight demand caused by India's economic development and urban expansion, Net Ease reported.
Karl Slym, president and general manager of General Motors India, said in an interview that the Chinese partner will holding shares of the India subsidiary through Hong Kong joint venture. He also indicated that similar business model will be used in other markets.
Light trucks model from China will favor General Motors to compete with its rival Mahindra & Mahindra and Tata Motors in India. Slym expected a 15 percent annual sales growth in the one ton carrying capacity truck market.
"To cooperate with Chinese company is an advisable strategy”. Puneet Gupta, an analyst from the professional auto consulting company CSM Worldwide said that consumers in the India light trucks market prefer cheap and fine products to those high-priced famous brands.
He also said that sales number of three tons load trucks and below is likely to soar from 200 thousands of 2009 to 35o thousands of 2016 in India.
GM India has sold more than two times numbers of automobiles than the same period of last year in April though has none commercial light trucks. Its soon-to-be partner SGMW, the Chinese biggest jubilee wagon manufacturer, jointly held by GM and Shanghai Automotive Industry Corporation (SAIC) Group, has sold 1.1 million vehicles last year with a 64 percent violently growth.