Following a potential deal (50:50) with General Motors for car market, Shanghai Automotive of China entered into another deal. This time it is with the Japan’s pioneer in electronics Pioneer for car navigations systems in China. After a nightmarish deal it had with the Korean firm, Ssangyong Motor for $500 million (2004) SAIC is very cautious in its every step of JV. SAIC documented Korean anti-Chinese obsession for the break up.

The company’s diversion now to India is seen as a surprise. The history discloses that both the countries had a tough war in 1960s and there has been an unresolved border dispute. Leaving them as history, the trade and commerce world has a different approach as more electronics and fiber goods have earned good command in the Indian market. The Chinese government company’s (SAIC) diplomacy is to gain entry into India through the back door for ensemble of more business prospects.