A Chinese car for Indian roads
November 23, 2010

At a time when corporate synergies between China and India are growing, the Sino-American behemoth auto Joint venture SAIC-GM-Wuling (SGMW) rolled out its first own-brand – the Baojun 630 passenger car , in Southern China. The automaker is considering exporting the Baojun 630 to India and other overseas markets through Completely Knocked Down parts and technology transfer.

In India, GM and SAIC plan to jointly produce small cars based on the Wuling platform. GM is contributing manufacturing facilities and a sales network it already has in India while SAIC is to invest about US$300 million to US$350 million in cash.

The Baojun 630 sedan, is the first model to be produced under the soon-to-be-launched Baojun brand name. Targeting China’s middle class, the Baojun 630  is a four-door sedan and is expected to go on sale in early 2011 through a new network of dedicated Baojun dealers. The compact sedan features a highly efficient GM powertrain that meets all local emission standards as well as the advanced Euro IV standard, and will be built at SGMW’s facility in Liuzhou, which has an initial annual capacity of more than 100,000 vehicles.

Bullish on the rapid development of its mini commercial vehicle joint venture, General Motors has entered into an agreement Sept. 30 to purchase an additional 10 percent stake in SGMW for US$51 million from Wuling Group, a move that makes the joint venture assessable to advanced, global technical support.

The SAIC-GM joint venture sold over three quarters of million cars, and the SAIC-GM-Wuling joint venture sold over a million cars. More importantly, both of these GM operations in China grew at over 50 percent last year, making it a sure bet that total GM sales in China will exceed those of the US this year.

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