"General Motors has entered into a collaboration with Shanghai Automotive Industry Corporation (SAIC) to develop and manufacture commercial vehicles and other competitive products for India and export markets," the firm said in a statement.
The tie-up will give GM India, the company's subsidiary in India, access to mini-commercial vehicles and other products from the stable of GM’s joint ventures in China, it added.
"These will be produced at GM India’s Talegaon and Halol plants alongside GM’s portfolio of models for India and global markets," it added.
The statement, however, did not clarify on reports of SIAC picking up 50 per cent stake in GM India. It said: "The collaboration is expected to be finalised shortly."
"This (the tie-up) will give us an opportunity to utilise and expand our manufacturing capacities as we introduce additional products that are tailored to the needs of local vehicle buyers and local driving conditions," GM India President and Managing Director Karl Slym said.
Commenting on the development, GM International Operations President Nick Reilly said over the past decade, GM and SAIC have created one of the world's most successful automotive industry partnerships in China and cooperation in Korea.
"We look forward to bringing our model for success to India, which is one of the world’s most vibrant emerging vehicle markets," Reilly added.
The GM-SAIC tie up follows GM India-Reva collaboration to launch electric vehicles in the market.
General Motors currently manufactures the Chevrolet Spark, Chevrolet U-Va, Chevrolet Aveo, Chevrolet SRV, Chevrolet Optra Magnum, Chevrolet Cruze, Chevrolet Tavera and Chevrolet Captiva at its two state of the art facilities in Halol and Talegaon.
It also operates R&D, Engineering & Design Centres in Bangalore. Its engine plant is also fast coming up at the Talegaon site and will be commissioned by the end of next year.