SAIC, GM to work together in India

Shanghai Automotive Industry Corp (SAIC) and General Motors (GM) are set to join forces in a bid to crack the Indian auto market, the Financial Times reported. The two companies are expected to announce the tie-up today. SAIC shares were suspended from trading Thursday pending the disclosure of a "major asset restructuring," prompting speculation that the Chinese firm might alter the shareholding structure of its domestic joint ventures with GM as part of the deal. Their strategy is likely to focus on launching some of SAIC’s light commercial vehicles – minivans and mini-trucks – in India, directly challenging Tata Motors, which dominates the segment. Analysts said the tie-up made sense for both companies: SAIC craves a greater global presence while GM wants to offer more vehicles from a cost-effective platform. The Chinese firm’s last attempt at overseas expansion ended in disaster as South Korean automaker Ssangyong went into receivership.