India's automobile manufacturing sector has been booming lately, and all leading makers want a piece of it. Not far behind are GM and Chinese car maker SAIC, who are all set to jointly enter the Indian market to make small cars and commercial vehicles, taking the 12 year old successful and lucrative partnership to yet another growing sector.

The venture will be a 50-50 partnership, but GM, which is restructuring and still trying to find a firm ground after bankruptcy, will be selling its 1% share to SAIC for nearly $85 Million, making the Chinese firm a 51% majority stake holder.

"We have had a successful relationship with them for 12 years. It seems to us very sensible and a big opportunity to broaden that relationship outside China", said Nick Reilly, President of GM's International Operation, while announcing the partnership.

The joint venture, in which SAIC will put in the funds and GM will put in all its existing Indian assets, targets to sell around 225,000 vehicles a year over the coming few years.

GM India has confirmed that its American parent would join hands with SAIC to manufacture and develop commercial vehicles and other products which will be introduced in Indian markets and also exported, mainly to markets which are still emerging.