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GM forms India-China alliance

By: Kristie Thong, India
Published: Sep 14, 2011


India - General Motors India has formed a partnership with its Chinese partner Shanghai Automotive Industry Corporation to establish a common supplier base and subsequently cross-shipping of vehicles.

The 50:50 joint venture will see GM's 440 suppliers in India begin sourcing components to China by the end of this year or early next year, Business Standard reported.

"At present, we source components valued at around $500 million for our overseas operations. This is likely to go up considerably over the next two years," P Balendran, vice president and director of corporate affairs at GM India said.

The partnership is looking to launch five new vehicles over the next 18 months, including two light commercial vehicles, a sports-utility vehicle, a sedan, and a hatchback.

Meanwhile, it is also planning to consolidate its shares in the domestic market and subsequently export from India.

GM India will be increasing capacity from 85,000 to 110,000 units at its Halol production plant in Gujarat by the end of this year.



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