Gasgoo has not surprising news. GM China announced that by the end of next year, they will invest India with mostly small trucks and possibly passenger cars, taken from their GM’s and SAIC’s Chinese portfolio. So far, so boring.
India’s Economic Times has a more alarming slant to the story: “General Motors may use its Chinese associations to launch a rival for Tata Nano in India.” Most likely, all are missing the real story.
The biggest winner of this is little Wuling.
In December last year, GM handed their Chinese partner SAIC the keys to the Indian market, from which SAIC had been effectively locked out. GM and SAIC formed a 50:50 Hong Kong based investment company that owns the Indian operations. GM contributed their Indian presence, SAIC contributed $350m in cash that was in sort supply at the times. For that pittance, GM sold off half of their future in the world’s next big auto market.
And the cars from GM’s and SAIC’s portfolio? Fluff. Economic Times says that “the first products from General Motors’ three-way joint venture in China with Wuling and SAIC will be introduced in India end 2011 when it will roll out two minivans — Wuling Rongguang and Sunshine.”
No Nano-killer from GM. Wuling will flood India with utterly boring, but immensely successful (in China) little Wuling delivery vans. GM holds a 34 percent stake in the joint venture, but counts 100 percent of the sales as theirs. Wuling vans make up for more than a million of GM’s Chinese success.