Another Chinese Product

Shanghai Automotive Industry Corp (SAIC) is all set with a 51% stake in the JV with GM to enter India. This would be the first time a Chinese car maker is entering India at this scale. In China SAIC is the leading car maker and GM is the leading foreign car maker. Together the strategy is to take TATAs and Marutis head on with price. With a long history of the Chinese in consumer electronics, Indians have always percieved the goods as cheap alternatives. The electronics were always in the Use and Throw mode. There had never been a successful brand from China in the past.But cars in India are going to be a High Involvement Purchase with a high influence from family and friends as references. With the strategy of low pricing, this quality perception is just going to continue. This may also tamper the GM brand individually.