GM Looks to Boost Sales, Manufacturing in India
Rising labor costs may ultimately stymie General Motors’ manufacturing operations in Korea, but the automaker seems poised to make India a priority in years to come as a means to increase its market share in the emerging market.
According to Reuters, GM is planning to launch a bevy of new products in India, with a full strategy set to be announced later this year. General Motors is looking not just to become a money-maker in India for this first time in nearly two decades, but it’s also looking to increase its market share to at least 5% in the country.
GM projects that India will eclipse Japan as the third largest market for new cars by 2025.
“India may be the last big white sheet of paper in the automotive industry,” Stefan Jacoby, GM’s chief of international operations.
GM plans to sell as many as 400,000 cars annually in India within the next decade, which is a considerable increase from the 57,600 vehicles it sold in 2014. GM plans to accomplish this by focusing on subcompact cars that offer more than the bare-essentials template most other automakers follow.
“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,” said Jacoby.
It’s expected that India’s rise in manufacturing will cause a substantial drop in Korean manufacturing, possibly even halving it. Jacoby says that GM does not plan to close factories in South Korea, but that it is looking to find ways to “drive efficiencies over time.”
News Source: Reuters