Chinese auto giant SAIC Motor Corporation has denied of acquiring of General Motor’s manufacturing facility at Halol in India.
SAIC said it has noticed some media report about it signing an agreement with General Motors to take over later’s Halol Car Manufacturing facility.
In a clarification statement, P Balendran, Chief India Representative, SAIC Motor Corporation, said 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 that has been conveyed in a filing to Shanghai Stock Exchange, where SAIC has been listed.
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, Balendran said.
However, he said that SAIC’s decision to foray 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.
It may be noted that SAIC has already registered a company christened MG Motor India to sell vehicles with an “MG” tag in India.
In addition, the company has also appointed eight board of directors besides making a few appointments in HR, finance and IT departments.
SAIC took an initiative to enter India in 2010, in an alliance with General Motors. Both the companies have planned to introduce five Chinese models, including a small car, a sedan and light trucks. But the project was subsequently dropped.
Currently General Motors is in the process of consolidating its operations in India and had announced that it would close Halol plant while focusing on the other plant at Talegaon, Maharashtra.