General Motors India is set firmly on the Indian turf and seems to be playing well. The parent General Motors Company has emerged from its bankruptcy period of three months and has acquired the Indian arm which is definitely a profit making entity. Now GM is planning to bring in a low cost car which will be priced below $4000. The company is targeting the Asian market with its low cost compact car which will also be produced locally.
"When Tata Motors in India came out with their $2,500 Nano vehicle, it put a lot of auto makers on the spot," said Nick Reilly, GM's newly installed Executive Vice President, International Operations. Tata Motors is also planning to sell its versions in the overseas market. There is a great demand for small cars in the western world where the demand for bigger cars had dropped sharply.
So far the final manufacturing destination has not been decided but it will be most likely in Asia only. GM already has joint ventures throughout Asia and is close to choosing a partner to acquire a majority stake in its Opel/Vauxhall business. The company already manufactures micro minivans with its Chinese partners.