SAIC, GM in talks on India cooperation

Published: 18 Oct 2009 22:40:56 PST

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Oct. 19, 2009 (China Knowledge) - SAIC Motor Corp Ltd<600104>, China's largest auto maker, is in talks to buy a stake in its partner General Motors Corp's India unit, a source with knowledge of the matter said on Friday, Reuters reported.

The discussions between SAIC and GM were aimed at expanding their ties, including business opportunities in India, but no final decision has been made on the ways of cooperation, said the source.

The two companies may introduce light commercial vehicles produced at their joint venture, SAIC-GM-Wuling Automobile Co Ltd, to India to tap the rising demand for small trucks in the country.

GM declined to comment on the matter while SAIC said only that it was continuing discussions on further business opportunities with GM.

During the first nine months of this year, GM sold a record 1.29 million vehicles in China, 55.6% more than the same period of last year.