GM to sell stakes to SAIC

General Motors Co. will sell half of its Indian operations and a 1 percent stake to its Chinese joint venture partner Shanghai Automotive Industry Corporation (SAIC), reported the New York Times, citing people with knowledge of the matter.

GM already produces passenger vehicles in India, but the automaker is expecting to expand the fast-growing market, and it has been searching for cash since this autumn. In October, India media reported that SAIC was in talks with GM about exploring opportunities in India.

"It's a big deal, it's a good deal," a person close to GM told the New York Times.

GM and SAIC now have a 50-50 venture in China. Under the deal being completed, GM would sell a 1 percent stake in the venture to SAIC. But GM would keep equal voting rights in company decisions and can buy back the stake later.

Agencies and Shi Jierui contributed to this story