The largest US automaker is searching for the winning strategy to allow it to tap further unexplored potential for market growth in India, which is forecasted to grow enough to become the world’s third largest by 2025.
General Motors is seeking to lift its market share of the Indian auto market to more than 5 percent within the next ten years, as the annual sales forecast for the Asian market will reach 8 million units by 2025, enough to snatch the last podium place from the traditional holder – Japan. Unfortunately so far, the Detroit group is still on a negative financial stance in India even after its official presence has passed eighteen years, but aims to address the situation by developing a new plan – sliding sales will be turned around with a major product offensive, while the country itself will become its latest crucial worldwide production and export base. The company will deal two blows with one swing with the move, as the strategy will lift some pressure coming from South Korea, where the automakers have been struggling with rising labor costs for the past few years. GM will unveil all the details associated with the plan later on this year, with the company introducing new subcompact models especially for India – where customers are rising in confidence and are shunning cheap cars for ones that offer more space and features. “India may be the last big white sheet of paper in the automotive industry,” commented recently Stefan Jacoby, GM’s chief of international operations.
The Indian auto market hads been level during the past few years and started to slip a while ago, but the new Prime Minister brought the necessary stability as he pledged to return the region’s third biggest economy to growth last year. The industry executives are seeing a consumer shift away from cheap cars in the range of Tata’s Nano model and are modifying their plans accordingly, redirecting production quota from elsewhere to India.