China's SAIC plans to Make in India soon

China's biggest automobile manufacturer SAIC Motor Corp is all set to become the next company to become a part of the Modi Goevrnment’s Make in India campaign. It plans to buy the Gujarat factory of the American carmaker General Motors.

SAIC, which partners GM in China and holds a single digit percentage share in the US company's India operations, is conducting a due-diligence of the Halol factory that GM will vacate by July as it focusses on operations through its plant at Talegaon in Maharashtra. "The company is in advanced stages of negotiations with GM on the matter," a top industry official told TOI.

SAIC -which also partners German auto giant Volkswagen in China -will be the first major automotive company from dragon land to start manufacturing in India, if the deal with GM materializes. The company is expected to begin its India operations by contract-manufacturing GM India's models that are already being made at Halol, sources said.

A spokesperson for GM India told TNN, "We are examining a number of options in relation to the Halol factory. We have nothing further to announce at this time."

SAIC had bailed out GM's India operations in 2010 when the company was battling bankruptcy in the US. GM's Indian business has been a laggard for many years. "After getting control of the Halol plant, SAIC may also sell its holding in GM India," a source said.

Halol, GM's first factory in India, has a capacity of 1.1 kers.

(Image credits: indiatimes)