GM looking for growth in India, China car markets<\/p>\n
Agence France-Presse, New Delhi<\/p>\n
U.S.-based General Motors Corp., the world's biggest automaker,
\nsaid on Monday the firm was looking at growth in India and
\nChina's car markets to ride out the industry's tough times.<\/p>\n
"As one of the fastest-growing vehicle markets, India and
\nChina hold tremendous promise for us at a time when there is a
\nglobal slowdown," Aditya Vij, president of General Motors India,
\nsaid at the launch of the firm's Chevrolet Optra luxury sedan.<\/p>\n
"By launching new cars in quick succession General Motors is
\nstrengthening its presence in these two Asian markets where there
\nis a rapidly expanding number of people who can afford to buy a
\ncar," he told reporters.<\/p>\n
General Motors plans to ramp up its investments in its factory
\nin Halol in the western Indian state of Gujarat to build and sell
\nthe Chevrolet Optra in India.<\/p>\n
"We will end up spending 13.8 billion rupees (US$294 million)
\nby the end of this year in manufacturing and selling the midsize
\nOptra in India. We hope to sell 1,000 to 1,200 sedans every
\nmonth," said P. Balendran, spokesman for General Motors India.<\/p>\n
"By making India among the first countries in the world to
\nbuild and sell the Chevrolet Optra, General Motors is
\ndemonstrating its faith in this market," he added.<\/p>\n
Analysts said the monthly sales in the higher-priced C-segment
\ntotal around 10,000 cars for all companies.<\/p>\n
Currently, General Motors has a share of about two percent of
\nthe entire Indian car market and about eight percent share of the
\nbigger, mid-sized car segment.<\/p>\n
Auto analysts said that General Motors had under-priced the
\nChevrolet Optra at 789,000 rupees in order to grab market share
\nfrom its Japanese rivals.<\/p>\n
"The Optra is a fully-loaded car and a sight cheaper than
\nother cars in the C-segment like the Toyota Corolla, Mitsubishi
\nLancer and other Honda-make cars," said car analyst Pradeep
\nSarkar.<\/p>\n
Earlier this year General Motors India's Vij said the company
\nwas hiking its annual output capacity from 8,500 cars to about
\n50,000 cars within three years in its factory in Halol, taking
\nits total investment in India to 16 billion rupees.<\/p>\n
While General Motors entered India by launching the luxury
\nOpel Astra, its competitor Hyundai gained sales volumes by
\ntargeting the small car segment with its Santro model.<\/p>\n
Analysts say a strong bet for General Motors could be to tap
\ninto the products of its Asian joint venture partners to launch
\ncars in the cheaper and bigger volume car segments.<\/p>\n
General Motors' 20 percent equity stake in Japan's Suzuki
\nMotor Corp., which owns India's largest car company Maruti, could
\nhelp it improve its market share by increasing its distribution
\nclout.<\/p>\n
General Motor's takeover of South Korea's Daewoo Corp.
\noperations could also help as the company's small Matiz car is
\npopular in India.<\/p>\n
However, it has not acquired the Korean company's Indian
\noperations.<\/p>\n
During the three months to May, the Indian automobile industry
\ngrew between 36 percent and 40 percent, according to industry
\nfigures.<\/p>",
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