GM India Sets Target to Sell 4 Lakh Cars by 2025

GM has been in India for 18 years now and has been losing money. The only way to get back on its feet is to unleash a product blitz aimed at reviving sagging sales. There are also plans to make India a new global manufacturing and export hub, taking some strain off South Korea, where labour costs have risen in recent years.

Also Read: Chevrolet to Launch Trailblazer SUV and Spin MPV in India

As part of a strategic plan due to be announced later this year, GM will launch newly designed subcompact cars into India, where buyers are shifting from no-frills economy cars to models offering more room and functionality.

In an interview with Reuters, Stefan Jacoby, GM's Chief of International Operations said, "India may be the last big white sheet of paper in the automotive industry. We're pretty optimistic. We see growth potential in India, and believe there's a good opportunity for the Chevrolet brand to take share in this market. There's more prosperity and buying power. Vehicles selling for $5,000-$8,000 will more and more disappear in India."

Also Read: Chevrolet Trailblazer vs 2016 Toyota Fortuner vs New Ford Endeavour

By 2025, GM hopes to be selling 400000 vehicles a year in India which is a big ask considering they managed to sell a total of 57,600 units last year, giving them a 1.8 percent market share. According to Jacoby, GM hopes India will export approximately 30 percent of its production. This translates into them shipping around 170000 cars a year to Latin American and Southeast Asian markets.

The company is already exporting the Beat from India since September last year and has shipped 2154 cars till the end of that financial year.

With such optimistic targets set, GM has no option but to more than double its production capacity. Currently, the company has annual capacity of 2,82,000 at its assembly plants in Halol and Talegaon. To achieve the target set, the capacity has to be increased to 57000; which is a big ask.

Jacoby said that with the new for-India models, GM plans to significantly boost the ratio of components made and bought locally to around 70 percent of the overall component content - making the cars more affordable. The company will begin its product offense with the Trailblazer SUV this year and the Spin MPV in 2016.

With Inputs from Reuters