America’s popular automobile manufacturer General Motors is planning to increase its production in developing countries like Russia, India and China. These countries are famous for their appetite for low-cost vehicles and GM feels that focusing here will highly promote company’s growth. GM Global manufacturing Chief Diana Tremblay stated, “Incremental future vehicle production is to come mostly from low-cost countries with the most growth”.
By 2015, the company will see a share of 80 percent of its additional production come from these countries and thus these low-cost developing countries will highly contribute to GM’s growth. For the record, Tremblay also added that the company is not ignoring high-cost countries like Western Europe, Australia and America as GM is investing $5.5 billion in these countries on other side.
So far, in India where Maruti alone owned half the market share, GM is also entering with full swing. GM India Managing Director and President Karl Slym said, “In smaller towns, the impact of slowdown is very little as people there don't rely much on car loans. With a good monsoon till now and good signs this year too, people in rural India are quite comfortable."
Following that, GM is now planning to open 50 more outlets in India in order to meet the demand of emerging markets. Slym said, “A couple of years back, we would have our 60 per cent per sales from metros and 40 per cent from non-metros. But now the figures have been reversed. Now with even deeper penetration in smaller cities, we expect the sales contribution from smaller centres to go up to 70 per cent."
