The automotive producers have taken this decision as a response to the market’s increasing demand for freight, a phenomenon caused by India’s rapid development.
The light trucks will be produced by the Chinese company Shanghai Automotive Industry Corporation (SAIC), who is GM’s joint venture partner on the Indian market. Through the introduction of the new commercial vehicles, GM will be able to compete against Mahindra & Mahindra and Tata Motors.
Karl Slym, president and general manager of General Motors India, predicts that the one ton freight capacity segment of the truck market will see a 15 percent increase in annual sales.
Last month, GM announced that it would offer SAIC a management role in its Indian business. The Chinese company has received a number of key management positions in GM’s Indian operations.
GM established a 50:50 joint business with SAIC in India in December last year, by selling half of its business in the country to the Chinese automotive producer. SAIC paid GM $500 million for the project, with the company’s officials stating that the collaboration would be expanded in the future.
SAIC issued a set financial predictions, which indicated that the company’s Indian JV with General Motors will become profitable in three years time. The business currently focuses on producing and selling small vehicles, so the aforementioned development will bring the company to a new territory.
Google News