General Motors, the US based leading car maker, is planning to double its annual production capacity to 4.05 lakh units in India by year 2013. The company has planned-a heavy investment of $400 million (Rs 1,800 crore) for this proposed capacity expansion. GM is targeting to acquire a market share of up to 10 percent with an annual sales of 3,00,000 lakh cars by 2013.
“We have renewed our focus on the Indian market as part of our initiative to tap emerging markets and strengthen our position in the Brazil, Russia, Indian and China. The business model after the IPO, slated later this year, is to focus on these growth markets. We would be leveraging our unmatched global resources, as well as growing local capabilities to develop vehicles and power-trains in India to maintain profitability," said GM International Operations president Tim Lee while speaking to ET.
The company is also planning to roll-out a new small car in the Indian market that will be positioned below Chevrolet Spark. The new small car, which will be competing with the likes of Maruti Alto, is expected to be rolled-out in collaboration with Shanghai-based SAIC Motor Corp. Mr. Lee had recently said while speaking to the reporters, “We are looking at having products strategically across segments to boost sales in the Indian market. We working closely with SAIC and looking at opportunities to introduce a product priced lower than the Spark in future.”
