Chinese trucks could be part of GM’s global script for India

(chinatrucks.com, Oct. 12, 2009)Mumbai, Oct. 12 General Motors India is putting in place an aggressive global plan for its cars, engines and even light commercial vehicles, to be produced in tandem with China’s Shanghai Auto, from its new Talegaon plant near Pune.

This is part of its strategy to optimise India’s capabilities in the Asia-Pacific region as a low-cost, high quality sourcing base. In a month from now, the engine and transmission (or powertrain as it is better known) line will be commissioned at the Pune facility followed in January by the launch of the Chevrolet Beat compact car, code-named the M300.

Thus far, GM’s exports from India were confined to Nepal, Bangladesh and Bhutan but with the Beat, this will take a huge step forward, Mr Karl Slym, President and Managing Director, told Business Line, with Asia-Pacific and possibly Europe being part of the new global order. This will hold true for the powertrain business too where, in addition, China could be a likely destination.

The big surprise could be in the light truck segment where talks have been going on for some months now with Shanghai Auto to consider the Wuling series for India.

LCV market

The three-way joint venture, SAIC-GM-Wuling has been doing brisk business in China and will soon export the Wuling N200 and N300 series to South America, Africa and West Asia under the Chevrolet brand.

According to industry sources, GM has been in talks with SAIC to make the Chinese mini-trucks here. But they did not put a timeframe to finalising the deal or starting production at Talegaon.

The market buzz is that things should be in place during the next six months and India could then emerge an important production hub, after China, for the Wuling trucks which will sport the Chevrolet brand. Experts reckon the Wuling series made in India could be exported to the Asean region.

The success of the Tata Ace pickup has attracted other players such as Piaggio and Mahindra & Mahindra to this product segment. If GM gets its costing structure in place, which should not be too difficult with its localisation schedule at Talegaon coupled with inexpensive Chinese parts, the Wuling series may end up being the dark horse on Indian roads.

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