General Motors has increased its stake in its Indian joint venture from 50% to 93% by buying 43% from its Chinese partner SAIC for an undisclosed sum.
The joint venture, General Motors India, was formed in 2009 as part of GM’s expansion plans for Asia. The decision by GM to increase its stake “is a reflection of the confidence that the company has here and in the long-term potential of the country,” said GM India president and managing director Lowell Paddock.
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The JV was set up to built vehicles based on SAIC platforms; the first is the Sail hatchback due for launch next month with a saloon version expected in December along with the Enjoy, a multi-purpose vehicle. LCVs based on the same platform are also in the pipeline.
The change in shareholding will not affect these plans, said Paddock who told reporters in New Delhi that he expects the relationship with SAIC to strengthen as GM continues its Asian expansion.
