The Shanghai Automotive Industry Corporation (SAIC) has signed a dela with General Motors (GM) to acquire the American company’s manufacturing plant in Halol, Gujarat.
The Halol plant was responsible for production of the Tavera model while the other cars from GM’s (Chevrolet) portfolio are manufactured at its Talegaon plant in Maharashtra. The deal will also lead to the Tavera model being discontinued later this month.
With the acquisition of the Halol plant, SAIC will look to introduce its subsidiary brand MG Motor to the Indian automobile market. SAIC will look to introduce low cost models from the MG stable to compete in India’s lucrative small car market. The Chinese manufacturer will leverage the 1.30 lakh production capacity of the Halol plant. GM, on the other hand, will shift its focus to the Talegaon plant to improve its production volumes in the country.