GM Takes Control of India Venture

General Motors Co. has boosted its ownership of its India joint venture to 93% from 50% by buying a 43% stake from partner Shanghai Automotive Industries Corp. for an undisclosed price. The Chinese company retains a 7% holding.

GM says the move reflects its confidence in the long-term potential of India's market. The company's sales there fell 21% year over year in the April-September period that marks the first half of the venture's fiscal year. India's car market was flat during that time.

When the 50:50 venture was formed in late 2009, SAIC invested $50 million. GM contributed its existing India operations: two assembly plants, an engine factory and sales network.

The carmakers planned to introduce to that market the minivehicles they make in China in a three-way venture with Liuzhou Wuling Motors. The first of those models, the Chevrolet Sail, is scheduled to debut next month.

GM says it will continue its partnership with SAIC in other Asian markets through General Motors SAIC Investment Ltd., their 50:50 Hong Kong-based joint venture.