Rumors went agog about the Chinese Shanghai Automotive Industry Corp. claimed to have got a stable share in the Indian plant of General Motors in Talegaon. This unit is known for its potential of producing 140000 units per year. SAIC is already in business terms with GM in way of Shanghai GM, SAIC-GM-Wuling Automobile and the Pan-Asia Technical Automotive Center. This apart, SAIC is in association with VW in the form of Shanghai Volkswagen Automotive along with several subsidiaries to make a wide range of commercial vehicles and mini-cars.
SAIC’s venture with GM directly will enable the company to have an easy access in the Indian market for its products. If the deal materialized, the first car to come out of the deal would be SAIC-GM-Wuling mini car. After that several other range of models would ply from China. But the horn is in off condition in GM circles.