General Motors Company (NYSE:GM) is planning to grab at least 5% of the auto market share in India within the next decade. India will become the world’s third largest auto market by 2025 with annual auto sales of 8 million vehicles.
GM has been losing money in India even after eighteen years in the market. The company aims to unveil a product blitz that aims at boosting sales in India and will make India both a manufacturing hub and global exporter.
The move to make India the new production hub of GM comes as labour costs in South Korea have increased in recent years. GM will launch its newly made sub compact cars into India as the Indian buyers are shifting from economic car models to cars with more space and functionality. According to Stefan Jacoby, GM’s Chief of International Operations, India may become the last big thing for the automobile industry.
Auto sales in India have been stagnant the past few years with sales capping at 3 million a year. However, according to Jacoby, things may change as Prime Minister NarendraModi has vowed to reboot the Indian economy.
Jacoby stated that India seems to have regained confidence after the election of NarendraModi. He further added that there is growth potential in India. He further added that there is a good opportunity for the Chevrolet brand to take a share in the market. The increasing prosperity and purchasing power of Indians could mean more sales for GM. Jacoby also said that card in the price range of $5000-$8000 will wane away from the market.
General Motors Company (NYSE:GM) has been realigning its international manufacturing operations to lower costs and increase profitability. It has closed down plants in Australia and Indonesia while scaling down operations in Thailand. According to James Chao, India could be the new exporting hub for GM and could be a partial replacement for South Korea.
