Report says that the Indian company General Motors is said to be considering venture with its Chinese partner SAIC Motors and plans to launch its light commercial vehicles, popularly called minivans, in the domestic market in the medium future.

According to one of the company’s executive, the minivans are not on a priority bases, the company is considering first the launch of its third compact car, Beat, scheduled for launch in early 2010, than introduction of the petrol automatic version of the Cruze and lastly will focus on minivans. So, minivans are likely to be out only after 2010 in Indian market.

The detail of the venture is also not finalized currently. China will be benefited with the good Indian market if the deal works out. "The Indian market has huge potential for cheap, small cars and the market is booming," said Klaus Paur, North Asia director for market research company TNS. "It would be a good move for GM."

Karl Slym, President & Managing Director says his minivans would have to be manufactured in India to be price competitive, and be available in the diesel engine option.

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 report says that GM China with the JV of two Chinese companies, Wuling and SAIC sells around 80,000 units of these minivans every month and commands a market share of 43 per cent in the Chinese minivan segment aided by Chinese government subsidies. The most popular models are Wuling N200 and the N 300 series and these same models are also expected here. The company has denied commenting about the models to be launched as nothing is finalized as of now. 

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Posted by Naresh Koshti on 24 October, 2009 12:03:55 PM IST #