Goods made in China are often viewed as low quality products by most Indians. However, General Motors, the leading automobile manufacturer in the world, is relying on cars designed and created in China to attract customers in the Indian automobile market. The Indian automobile industry witnessed slow growth last year, which affected GM as well.
The company is now all set to introduce a range of new cars designed by SAIC (Shanghai Automotive Industry Corporation), its Chinese partner. General Motors does not seem to be affected by the perception of Indians about Chinese goods being inferior. Lowell Paddock, President and Managing Director, General Motors India, said "I am aware of the perception in India but what we will be making is no toy but a Chevrolet car, the iPads, iPods and laptops that sell in India are also made in China but they are still favourites here and all over the world. The cars confirm to our DNA of quality and reliability and though designed in China, they would be manufactured at our factories here."
In 2011, General Motors reclaimed the title of being the market leader in the automobile industry that it had to forgo in 2008 to Toyota. However, its position in the Indian car market is not that stable. In 2011, General Motors sales increased by around 0.6 per cent to 111,056 cars and SUVs. Its total market share in the Indian automobile market in 2011 was 4.4 per cent. Toyota Motor Corporation sailed ahead of General Motors to gain the fourth position in the Indian car market.
Lowell Paddock said "Last year was a tough year for the industry and saw a lot of shifts. We launched the diesel Beat and that has done well. We want to maintain and increase the product momentum and get back to the time when we were growing faster than the market.”
General Motors has its presence in India through the Chevrolet brand. The company will be introducing Sail, its fourth vehicle in the small car segment in the Indian car market, by mid-year. General Motors will also launch a multi-purpose van by the end of this year. These models will be manufactured in China.
