SAIC Motor, China’s largest car maker, is expecting profit within three years at its Indian joint venture with General Motors through sales of small, low-cost cars, its chairman said on Wednesday.

In an interview with Reuters in Taipei where he is accompanying the mayor of Shanghai on a visit, SAIC chairman Hu Maoyuan said the Indian car market would grow to 5m units a year in five years from 2m now, and was the company’s most important market outside China.

Top Indian automaker Maruti Suzuki said earlier this week it expected the domestic market to grow much faster than projected to reach annual sales of 4.5-4.6m cars by 2015, up from less than 2m cars a year at present.

The company also admitted that it may not be able to hold on to its 50% market share as rivals increase their investment in the country.

“We want to build a stable base [in India], then we can compete in the whole of southeast Asia,” SAIC’s Hu told Reuters on Wednesday.

He added that SAIC would increase capital at its China auto financing venture with GM by about half to CNY3bn to take advantage of growing demand for loans in the world’s biggest car market.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

He saw over 10% growth in China’s vehicle market this year.

Earlier this month SAIC reported a return to profit in the fourth quarter, boosted by government stimulus incentives. It runs vehicle manufacturing ventures in China with General Motors and Volkswagen and takes a 19.9% slice of the country’s vehicle market.

Just Auto Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Auto Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now