HONGKING – General Motors has sold 50 percent of its Indian operations to SAIC for $500 million, according to a news report in Business Standard citing GM officials.
GM vice president P. Balendran said the company had invested $1 billion in India since beginning operations in 1994, including setting up the Talegaon vehicle and powertrain facilities, Halol car plant, the Gurgaon office and an R&D facility (GM Technical Center) in Bangalore, and about half of this amount has been sold to SAIC. However, the R&D center will continue to remain a 100 percent subsidiary of GM, and has not been included in this transaction.
GM and SAIC announced to enter into a 50:50 joint venture investment company called General Motors SAIC Investment Ltd. (GMSIL) in Hong Kong earlier last December for use in purchasing General Motors India to manufacture cars for both the Indian and export markets.
The new GMSIL has announced an investment of $650 million for the first operational phase in India. The JV will launch small cars and utility vehicles designed by Shanghai-GM and SAIC-GM-Wuling in Indian domestic market from the second half of 2011.