General Motors has increased its stake in its Indian operations to 91%. The stake increase came as a result of GM buying 43% from its Chinese partner, Shanghai Automotive Industry Corporation (SAIC). The company has not disclosed the value of the transaction.
“The increase in shareholding in the Indian arm by General Motors is a reflection of the confidence that the company has here and in the long term potential of the country,” Press Trust of India quotes GM India President and Managing Director, Lowell C Paddock as saying.
In December 2009, GM and SAIC expanded their co-operation in Asia, and as a result formed an equal joint venture company. As per this deal, SAIC took a 50% stake in GM India, which then became an equal JV between the Chinese OEM and GM.
“Looking to the future, we will continue to actively collaborate with SAIC on product opportunities that support our aggressive growth plans in India,” Reuters cites GM spokesman, Klaus-Peter Martin as saying in an email.
GM’s car sales in India fell sharply in September, by 26.8%, from 10,112 units in 2011, down to 7,403 units. Its small hatchback Beat led the OEM’s sales last month, accounting for 4,539 units.
“The sales are not on the expected lines as the overall market continues to remain sluggish due to increase in fuel prices, negative market sentiment and various other factors. However, we expect the market to show some improvement closer to the festive season,” said GM India Vice President, P Balendran.
