On December 4th, SAIC Motor, based on Shanghai General Motors' predictions for future development, decided to acquire 1% equity of Shanghai General Motors for US$84.5 million ------- to establish a new joint venture factory in India in the first quarter of next year. Another concern is that the newly established GM Shanghai Auto quietly established an investment company in Hong Kong with a registered capital of 100 million U.S. dollars. GM Shanghai Automotive Hong Kong Investment Co., Ltd. acquired 100% of the shares of the former General India Company. SAIC and GM each held a 50% stake in the New India Company. The new Indian company includes the former General Electric's Telegaon and Halol two automakers, the Chevrolet Sales Company and an engine plant that will be put into use by the end of next year. Annual production capacity is about 150,000 vehicles. Locally produced and sold small and mini-car products developed by Shanghai GM, Pan Asia Automotive Technology Center and SAIC-GM-Wuling in India. At present, SAIC and GM have conducted research on the Indian market and are improving their development plans. In a sense, SAIC obtained the subordination of the Indian market in the form of cash flow, equity ratio, and cost-effective technology under the cooperation of GM's "collaboration." And take the new market position to dominate the new business in the general Asian market. In order to take full advantage of GM's role in the Indian market leading to the European platform - similar to Suzuki's use of Indian resources to expand the European market, SAIC GM's New India company also 'follow' this move to mobilize domestic and international two-way resources. After the transaction is completed, the Shanghai GM Board of Directors will add a director to be appointed by SAIC-Hong Kong, and the seats that SAIC and GM actually own on Shanghai GM's board of directors will be changed from 5:5 to 6:5. Both parties established General Motors Hong Kong Investment Co., Ltd. at a ratio of 50:50, and used this as an investment and cooperation platform to acquire GM’s business in India. The company plans to introduce GM’s products in China to emerging markets such as India. It is understood that since the Shanghai General Motors started mass production in 1999, the total sales volume has exceeded 2.99 million units by the end of November this year; sales volume has increased 22-fold. Since SAIC-GM-Wuling’s joint-stock restructuring in 2002, sales volume has increased four-fold, and the total sales volume has approached this November. 3.55 million vehicles. SAIC has surpassed Japan Suzuki and Italy Fiat in total output and profits this year, and has entered the top ten in the world's automobile pattern. In the first three quarters of this year, Shanghai GM’s sales revenue was approximately 60 billion yuan, and its profit exceeded 5 billion yuan. It is expected that the annual profit will exceed 7 billion yuan, and SAIC’s acquisition of GM and a 1% stake in India’s dominant market will not only mean that Simple local 70 million yuan profit reduction and cross-border new field increase? At present, GM's market share in India is 3.3%, ranking in Suzuki, Tata, and Hyundai, ranking fifth in the Indian market. Last year, India’s auto sales were nearly 2 million vehicles, and it is expected to grow by 12% in five years and double by 2015. At present, the proportion of minicars and small cars in the Indian market is as high as 95%. This time, SAIC-GM-Wuling's products as the main entry into the Indian market? Previously, GM used SAIC Wuling's product advantages and sales layout to win the first three years of local micro-vehicle. This time, GM has used global brand capital and relied on Guangxi Wuling Plus Steam Asset Management to acquire Indian market status with its manufacturing experience in China. Industry observation: There are many misgivings: I do not know whether the expansion of shares compared with the previous year, SAIC SAIC acquired South Korea Ssangyong, leading to the same risk without any risk; this time in India is still whether the OEM assembly; Roewe, Luo Whether or not Fufu can enter; annual production of 150,000 vehicles is the first and what is the main; India's 150,000 production capacity in India and Europe each accounted for the proportion; before, General Motors and FAW to establish a commercial vehicle company in Changchun, FAW-GM Can commercial vehicles enter the Indian market for OEM; SAIC-GM-Wuling-China's manufacturing experience can gain recognition in the Indian market.