India Heralds Change In Strategy For Chinese Automakers

News that General Motors (GM) has opened talks with SAIC Motor Corporation, over exploring a JV in India, signals a change in tactics by Chinese auto makers, who are leaving behind an aggressive acquisitive growth strategy in favour of building strategic alliances with competing manufacturers. In addition, recent attempts by Chinese firms to enter overseas deals with foreign companies have focused primarily upon acquiring access to foreign technology, before in turn making it into their own. However in this instance, a strategic alliance with GM in India would provide China with access to customers in one of the world's fastest-growing auto markets, second only to its own remarkable growth. So, what has brought about this change in strategy?

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