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GM-SAIC India JV to produce Wuling minivans in 2011

As its Chinese partner SAIC has already acquired 50% stake in GM India, General Motors bets on Chinese products to boost its sales in the Indian auto market by locally producing Wuling minivans first next year, local media reported.

The first products from General Motors' three-way mini-van joint venture in China with Wuling and SAIC will be introduced in India by the end of 2011 when it will roll out two minivan models: Wuling Rongguang and Sunshine. These will be built at GM India's Talegaon and Halol plants.

GM India now has access to the complete portfolio of GM, SAIC as well as the SAIC-GM-Wuling Automobile Company combine to be introduced in the country, said Timothy E Lee, president, GM International Operations.

Together with SAIC Motor, GM will also develop a new ultra-low-cost (ULC) car that might rival the Tata Nano. GM India has got a major break through with its Spark small car and the proposed low cost car will only create more competition.

SAIC-GM-Wuling expects to sell 1.23 million vehicles this year, up 16%, a target that includes 1.15 million Wuling-brand vehicles and 80,000 Chevrolet Spark cars. The venture's Jan-May sales grew 33% year on year to 545,400 vehicles.

Hot-selling Wuling Rongguang and Sunshine models have made SAIC-GM-Wuling a leader in China's minivan market. The Wuling Sunshine sold 596,630 units last year, an annual sales record by a single car model in China.