The Indian arm of General Motors (GM) seems quite aggressive for the Indian auto market in 2013 as it has already introduced a flagship model in the entry level sedan segment, namely the Sail sedan. Following a successful launch, the company is now expected to introduce the Chevrolet Enjoy Multi Purpose Vehicle (MPV) somewhere in April 2013, to take on the likes of segment ruler Maruti Suzuki Ertiga. GM anticipates that both of these vehicles will sell in good numbers and owing to this, the auto maker has set an increased sales target by 50 per cent for the year 2013.
A good sign for GM India is that 1000 units of the Chevrolet Sail sedan were booked in just 10 days, since its launch on 1st February 2013. The credit of impressive sales can be given to both petrol and diesel variants of the sedan, which provided a decent option to buyers to choose from. With a well appreciated launch, Sail sedan seems to be that model which can turn the tides in the favour of GM India.
With an increasing demand in the auto market, the American auto marque has increased its production capacity to 2.7 lakh units per year. As per P. Balendra, GM India Vice President for Communications, capacity of the Talegaon plant has been beefed up to 1,60,000 units from 1,40,000 units. In addition, the Halol plant of the company now produces 110,000 units instead of 85,000 units, being rolled out previously.
Reportedly, sales of GM India in the next few months are anticipated to be low. However, the car maker expects these numbers to pick up by the end of the ongoing year, while much would also depend on the 2013 Union Budget. The Indian auto industry anticipates certain measures to be taken in order to accelerate the slow growth of this sector. A measure that most manufacturers would be hoping for are lower interest rates. This is an important criterion, since most of the Indian buyers purchase vehicles through finance and thus, only a reduction in the RBI rate would help in increasing the purchase of vehicles.
The company hopes to sell 48,000 Sail sedans by the end of the current year. The petrol variant of the sedan is priced between Rs. 4.9 and 6.4 lakhs (ex-showroom, New Delhi), while the diesel variants range from Rs. 6.2 lakhs to Rs. 7.5 lakhs. In the overall market, an increase of production capacity is definitely going to help the GM India to meet the surging demand.
