General Motors India has said on Friday its parent General Motors would collaborate with Shanghai Automotive Industry Corporation to develop and manufacture commercial vehicles and other products for India and exports. The companies have entered into a 50:50 joint venture, which will be based out of Hong Kong, and will expand in emerging markets starting with India.
The collaboration, to be finalized shortly, would give the Indian unit access to mini-commercial vehicles and other products from GM's joint venture in China, the statement said. The vehicles will be produced in the company' existing two plants in India and will result in more jobs in the country, it said.
This agreement follows similar agreements by other auto majors including Renault are seeing India as a hub to manufacture small cars. Recently Carlos Ghosn, chief executive of both Renault and Nissan, signed a deal with India's Bajaj Auto to manufacture a low cost car. Tata Motors, which has pioneered the low cost car concept with its Nano, also has plans to sell the car across the world and produce hybrid models of the same.