GM turns to China to crack Indian market

General Motors Co. began initial production of its first ever Chinese-designed car for the Indian market this week, a major step for the US auto maker as it tries to scale up operations in the domestic market.

The compact Sail, sold as a sedan and hatchback, will go on sale next month as the first model designed by GM's Chinese partner SAIC Motor Corp, said Lowell Paddock, president, GM India.

"Sail is in some ways perhaps the first vehicle designed with primarily Asian customer requirements."

SAIC holds a 50% stake in the Indian unit. A larger passenger van from SAIC's stable will begin production in India by 2012 end.