China's SAIC Motor Corporation and Great Wall Motors are said to be in talks with General Motors to jointly acquire the US carmaker's remaining vehicle assembly plant in India, according to local reports in India.
The plant, located in Talegoan in India's south-western state of Maharashtra, has a production capacity of 165,000 vehicles and 160,000 powertrains per year.
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SAIC had already acquired GM's other vehicle assembly plant in Halol in the state of Gujurat in 2017, where it produces vehicles under the MG brand – which SAIC acquired in 2007.
MG Motor India launched the locally-made Hector SUV in June, with prices starting at INR1.248m (US$17,800) for the 1.5L petrol model. The Hector range also includes a 1.5L petrol/hybrid model and a 2.0L diesel model and has been relatively well accepted by the local market, prompting SAIC Motor's interest in GM's remaining plant in the country.
GM has exited the local Indian market along with a growing number of loss-making global markets in the last few years, choosing to focus instead on a few core global markets where it has a stronger market position.
For SAIC and Great Wall, acquiring an existing plant will allow them to expand more quickly in the Indian market.
