SAIC Motor Corp has decided to start venture to enter the Indian market with the help of a joint venture deal with General Motors. This is a significant step from the Chinese auto major, which is aimed towards the objective of establishing a firm position in one of the largest emerging auto markets.

In China, both the companies are already working under a joint venture. They have further plans to sell some of the Chinese producer's light commercial vehicles in India, including minivans and mini-trucks, in the market segment, which is currently dominated by domestic market leader, Tata Motors.

The senior director of the JD Power Asia-Pacific, Mr. Mohit Arora said, "SAIC is looking for a greater role in the global markets and GM wants to enhance its portfolio by offering vehicles that are coming from a more cost effective platform."

General Motors, which is already into vehicle manufacturing in India, has managed to increase its sales by 65% to 7,118 units in the month of November, in comparison with the same month of the last year.

There are speculations that SAIC has planned to enter a 50:50 joint venture agreement with GM, which has given an exceptional performance in China. Analysts have doubted the GM's acceptance of the deal, as there seems no reason as to why the company needs to enter the deal when it is already making decent profits.