Financial Daily from THE HINDU group of publications
Tuesday, May 10, 2005
Financial Daily from THE HINDU group of publications Tuesday, May 10, 2005 |
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Corporate
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Outlook Marketing - Market Shares GM India unveils plans for 10% market share Our Bureau
New Delhi , May 9 IN a bid to boost its marketshare to 10 per cent by 2007, General Motors India on Monday said that it would be launching a minimum of two new cars every year, beginning with the next year. "We are targeting to sell about 160,000 cars a year by 2007-08. And to achieve that level we will have to introduce a small car in our product portfolio. We have kept all options open for introduction of a small car, including a greenfield, a brownfield or expanding the current capacity at our Halol plant," said Mr Rajeev Chaba, new President and Managing Director of General Motors India. General Motors had shown interest in purchasing the assembly plant of the erstwhile Daewoo Motor India to make a small car for the Indian market, however, with the proposed sell-off of the assets stuck in legal wrangles, General Motors has indicated that its interest in the assets is waning and is mulling other options to make small cars. Though not revealing details about the other car models General Motors intends to introduce, Mr Chaba said it could include a model in the large hatchback segment (such as the Aveo) and a sports utility vehicle with high localisation content. "We may even look at importing our premium models such as Cadillac and the Hummer in the future. Further, we are looking at giving the Opel Corsa models, including the Corsa Sail, a facelift," he said. Further, the Indian subsidiary's strategic role and importance is increasing in the global operations of the parent company. According to Mr Chaba, GMI already has orders worth about $120 million for export of components this year, and the company sees this figure growing to $1 billion in the next 4-5 years. "We plan to use India as a strategic partner or source for General Motors," he said. The company plans to increase workforce at its R&D centre in Bangalore and encourage more Indians to occupy positions in General Motors' global operations.
To decide on Daewoo assets in 2 months GENERAL Motors India said it will decide on buying assets of the bankrupt Daewoo Motors India within two months, and that the company may drive ahead with its alternative plans if the Daewoo sale gets further delayed. "It's a matter of few weeks as per information given to us. The issue is currently at a blow-hot stage. We feel it will be resolved soon. We have already waited for around one-and-a-half years, during which the assets too have deteriorated and are not that lucrative anymore. However, once the issue is resolved, we will decide on whether to go ahead or not," Mr Chaba said. The key lenders to Daewoo Motor India have offloaded the assets to the Asset Reconstruction Company (Arcil), which in turn is negotiating with Government agencies to sell the Daewoo facility. According to sources, Arcil has moved the Supreme Court to settle the issue.
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