China's SAIC says not signed formal agreement to buy GM's India plant

NEW DELHI (Reuters) - SAIC Motor Corp has not signed any formal agreement with General Motors to take over the latter's car plant in the western Indian state of Gujarat, the Chinese automaker said in a statement on Monday.

SAIC has signed a term sheet to evaluate buying the plant but the deal is subject to General Motors securing all government approvals and settling pending labour issues, SAIC's chief India representative, P Balendran said in the statement.

General Motors has two plants in India and it said in 2015 it planned to stop production at one of its plants in Halol town in Gujarat state as it consolidates operations at one location. SAIC has been in discussion to buy this plant.

"S?AIC's decision to enter into the Indian market remains unchanged and the company continues to evaluate various options to set up a car manufacturing plant in India as early as possible," Balendran said.

(Reporting by Aditi Shah; Editing by Swati Bhat)