General Motors Company, the American multinational automotive manufacturer, raised its ownership to 93 per cent in its Indian Joint Venture (JV) with SAIC Motor Corporation on October 16, 2012. The American major operated in the country as General Motors India Private Limited (GMIPL), which was a 50-50 JV with the Chinese firm.
P. Balendran, Vice President, GM India informed the media of the latest development and affirmed that the company has no intentions of further changes in its operations in the country's passenger car market. He also stated that the decision regarding the increase in ownership stakes underlines the importance of Indian market to the company, which is all set to cement a strong repertoire among the domestic audience.
Speaking on the procurement of majority of ownership stakes from SAIC, in an email statement Klaus-Peter Martin, a spokesperson for GM said, "Looking to the future, we will continue to actively collaborate with SAIC on product opportunities that support our aggressive growth plans in India."
Reportedly, the American auto player has already started the assembling of the yet-to-be launched Chevrolet Sail hatchback dedicated at the small car Indian buyers at its local production unit. The July-September period of 2012 has not been comfortable for most of the foreign automotive companies and thus, GMIPL has pinned great hopes with the upcoming Sail car for becoming the company's first mass puller in the country. Further, the much anticipated Chevrolet Enjoy Multi Purpose Vehicle (MPV) is slated to go into production in the country by the end of 2012.
GMIPL total sales in the country dropped by 21 per cent during the first half of the ongoing 2012-13 fiscal as against the sales recorded during the same period of last financial year. The latest decision of side lining SAIC Motor Corp. from the decision making power suggests that the company has planned to do some significant changes in its product portfolio, which would empower it towards consolidating a decent position in the Indian market.
