General Motors Reworking Strategy In India

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American carmaker General Motors is reworking its strategy in India due to its rapidly falling market share, losses and low capacity utilisation.

The company will focus on exports and entering new segments in India like sub-4 metre sedans. If Project MCM as they call it, goes as per plan, there will soon be a short sedan based on the M300 in the Indian market as well as the new generation Beat hatchback by 2017.

The fastest growing segment in the automobile industry is the sub-4 metre or compact sedan segment, selling around 3.5 lakh units annually.

The export plan is the company's way of staying on the safer side. Sales of GM cars is falling steadily, in spite of new launches like the Sail UVA, Sail Sedan and the MPV, Enjoy.

GM in India is operating at only 30 percent capacity and its losses over time have accumulated to INR 6,552 crore.

The Indian auto market grew 2.3 percent during the April to October period while General Motors sales dropped 36 percent.

General Motors, which has started exporting the Beat hatchback to Chile recently, is looking if India can be the export hub to enter important markets like South Africa, Mexico and other Latin American markets.

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