General Motors Co. is in discussions with Chinese partner SAIC Motor Corp., China's largest auto maker by sales volume, on cooperation in India, a person familiar with the matter said Friday.
Such a partnership, if realized, would mark another means by which Chinese auto makers are expanding into global markets. Recent attempts by Chinese firms to enter deals overseas have focused on acquiring foreign technology. In this case, an alliance with GM in India would help SAIC gain access to customers in one of the fastest growing auto markets.
GM produces Buicks in China in partnership with SAIC. Above, a Buick in Shanghai.
The move would also further raise the profile of GM's relationship with SAIC, its chief joint venture partner in China, set to become the world's largest auto market this year.
GM's Chief Executive Fritz Henderson on Tuesday in a Shanghai press briefing said, "We have an extremely strong partnership with SAIC and we continue to grow that partnership in multiple ways."
The person familiar with the talks said details of cooperation between SAIC and GM in India haven't been finalized.
A media report in India said SAIC may buy a stake in GM's Indian unit. GM declined to confirm the report.
GM's Shanghai-based spokesman Michael Albano said: "We're often talking to [SAIC] about opportunities to improve both companies." He said, "India, among other countries, might be part of those discussions."
GM sees India "as a great growth opportunity," Mr. Albano said. "We probably could see the need to expand the portfolio," he said. Currently, GM mainly produces passenger vehicles in India.
GM and SAIC have a 50-50 joint venture in China, Shanghai General Motors Corp., which makes passenger vehicles. With Wuling Automobile Co. and SAIC, GM makes microvans in a joint venture called SAIC-GM-Wuling Automobile Co.
The Wuling venture is exporting some models to Peru under the Chevrolet brand and GM said last month it will also start Wuling exports to other markets in South America as well as to markets in North Africa and the Middle East.
Outside of China, SAIC has a 9.8% stake in GM's Korean unit, GM Daewoo Auto & Technology Co.
