SAIC, GM mull India JV

SHANGHAI: SAIC Motor Corp, China's largest automaker, is close to an agreement to cooperate with General Motors Co on producing and selling vehicles in India, two people familiar with the talks said.

The companies are setting up a 50-50 joint venture that would take over GM's Indian assets, one of the people said, asking not to be identified because the plans are private. GM will make an announcement today about the two carmakers' cooperation in the country, a second person said.

The India venture, to be set up in Hong Kong, will make and sell minivans, mini-trucks and small cars to tap demand for low-cost vehicles, one person said. GM and SAIC have been in talks about introducing light commercial vehicles in India, where economic growth is spurring demand for small trucks, GM India's Managing Director Karl Slym said in September.