SAIC signs formal agreement to buy GM’S plant in Halol
MUMBAI: China’s largest automaker SAIC has signed the long-deliberated deal with General Motors to buy the latter’s plant in Halol in Gujarat, according to a filing in the Shanghai Stock Exchange (SSE) on Wednesday. The filing did not reveal any further details about the agreement.
While the decision of shutting down the Halol plant was echoed by the American automaker in July 2015, the Shanghai Automotive Industry Cooperation stepped in in January 2017.
The Chinese buyout is a step in the direction of increasing its automotive footprint in India and at the same time giving a hand to the American automaker that recently said that it might make a formal announcement of stopping its Indian operations starting May, which could mean a decision to wind down its presence in the country might be in the offing.
SAIC has plans to reportedly invest $1 billion in India as part of its strategy along many others to enter the Indian market which is set to be the third largest in the world by the end of this decade.
General Motors, on the other hand is looking at withdrawing from the Indian market due to thinning of sales. GM India has been operating below annual capacity of 110,000 units in the country that is currently dominated by the likes of Maruti Suzuki and Hyundai.
According to a story by ET on Wednesday, a GM spokesperson had said that the company will “cease production of all vehicles at the Halol plant on April 28.”
While the decision of shutting down the Halol plant was echoed by the American automaker in July 2015, the Shanghai Automotive Industry Cooperation stepped in in January 2017.
The Chinese buyout is a step in the direction of increasing its automotive footprint in India and at the same time giving a hand to the American automaker that recently said that it might make a formal announcement of stopping its Indian operations starting May, which could mean a decision to wind down its presence in the country might be in the offing.
SAIC has plans to reportedly invest $1 billion in India as part of its strategy along many others to enter the Indian market which is set to be the third largest in the world by the end of this decade.
General Motors, on the other hand is looking at withdrawing from the Indian market due to thinning of sales. GM India has been operating below annual capacity of 110,000 units in the country that is currently dominated by the likes of Maruti Suzuki and Hyundai.
According to a story by ET on Wednesday, a GM spokesperson had said that the company will “cease production of all vehicles at the Halol plant on April 28.”
