(Yicai Global) June 8 -- Following its acquisition of General Motors' Halol plant in India, Chinese automaker SAIC Motor Corporation Ltd. recently set up a local branch to start operating in India, the 21st Century Business Herald reported, without mentioning the acquisition price.
The plant, located in Gujarat in western India, used to be GM's Chevrolet production base. It has about 1,100 employees and an annual production capacity of around 110,000 units.
Over the past two decades, the American multinational lost approximately USD588 million in India, and its share of the local passenger car market reached only 1.2 percent. It, therefore, decided to discontinue selling Chevrolet in India, the report said.
SAIC Motor has long planned to expand its presence in India. It struck a deal with GM in 2009 to set up a local joint venture. However, the US corporation has gradually repurchased shares in the new company in line with its global retreat strategy to divert more resources into the profitable North American and Chinese markets.
SAIC Motor has sold the remaining seven percent stake in the joint venture, and will start independent operations in India following the acquisition of the Holol factory, the report said.