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On December 4th, Shanghai Automotive Group Co., Ltd. and General Motors Corporation of the United States jointly announced that the two sides will use the Indian market as a starting point to jointly develop emerging markets in Asia. According to the agreement, the two parties will establish a GM Shanghai Automotive Hong Kong Investment Company with a 50:50 ratio, with a registered capital of 100 million U.S. dollars. The company will acquire 100% of the shares of the original U.S. Indian company and have GM’s brand and sales network in India. Two OEMs and one engine factory.
SAIC Motor and General Motors will use the joint venture company as a platform for investment and cooperation, utilizing the successful management experience of the joint venture in China, as well as locally developed products with competitive advantages, to jointly seize opportunities in emerging market development in Asia. Shanghai Automotive and General Motors General Motors will use the existing assets in the Asian region and network, production and marketing of generic Shanghai Pan Asia Technical Automotive Center, SAIC-GM-Wuling led the development of competitive new products, and the introduction of a venture's success Business model to expand business in emerging Asia.
At present, the two sides have conducted research on the Indian market and are improving their development plans. The new India company after joint venture restructuring will start business in the first quarter of next year.
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