SAIC Refutes Signing Agreement With General Motors To Buy Halol Plant

An Indian representative of SAIC Motor in a statement said, "SAIC Motor Corporation has seen some reports in the media about SAIC signing an agreement with GM to take over its Halol Car Manufacturing Plant. It is clarified that SAIC has not signed any formal agreement with GM for the Halol Plant. Few months back, SAIC signed a term sheet to evaluate the Halol Plant which has been conveyed in a filing to Shanghai Stock Exchange, SAIC being a listed company there."

Previous reports suggested that SAIC was in advanced talks in handover of the Halol plant. The production facility started making Opel cars for GM India in 1996 before moving to the Chevrolet brand in 2003. The plant has an annual production capacity of 1,10,000 units but has hardly been able to reach full capacity due to GM's slumping volumes in the country. The plant has also been plagued by labour issues over the years adding to its woes. GM India will exit the Halol plant on 28th April 2017.

SAIC is likely to make its India foray with the MG brand

Adding on its plans for the Halol facility, SAIC said, "SAIC's Halol Plant deal is subject to GM's submission of all government approvals, settlement of labour and all other pending issues by GM."

That said, the Chinese automaker is very much interested in commencing operations in the Indian market. The automaker reportedly planned to start operations back in 2010 in collaboration with GM, bringing a hatchback, sedan and Light Commercial Vehicles (LCV) to the country, but the plans were eventually discarded. This time round though, the company is expected to bring models under the 'MG Motor' brand (former British car brand) in the country.

Reiterating its plans to enter the Indian market, the Chinese automaker said, "SAIC's decision to enter into the Indian market remains unchanged and the company continues to evaluate various options to set up a car manufacturing plant in India as early as possible."