GM eyes to open 50 outlets in smaller towns

General Motors India has planned to spread their markets to the small towns and cities to boost up their sales. They find that most of the car companies target metropolitan or the cosmopolitan cities but, very few go for the suburbs. Although, there is a huge demand of passenger cars and related vehicles in small towns and cities too. People from a small town or city have to come to the nearest bigger cities to buy a car which is exhausting for them and this leads people to buy cars from the domestic companies which have good chain of dealerships across India, even within the small physical areas.

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Karl Slym, President and Managing Director of General Motors India reportedly said that the customers from the small towns rarely rely on financial schemes and loans which results a low impact in sales even after interest hikes. Rural crowd actively buy new cars as they are experiencing good profits due to satisfactory monsoon conditions.

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General Motors India may introduce around 50 new outlets in small towns and cities across India this year. Currently, they have 250 outlets in India. In the past, 60 per cent of the sales were driven from metros and 40 per cent of the sales were driven from small cities. But, with this strategy the sales share from small cities and towns is expected to rise upto 70 per cent. Last year General Motors India sold 1.1 lakh units of cars but this year they aim to have a sale of atleast 1.4 lakh units of cars.

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Chevrolet Beat Diesel, the most acclaimed hatchback, is to be introduced into the European market which is presently exported to countries like Bangladesh, Nepal, Bhutan and Sri Lanka, however the car is manufactured in India. The European market does not encounter the same demand of diesel cars as that in India but the demand is increasing day by day. The survey shows that, Western Europe has experienced a huge bounce in the sales of diesel cars this year which is around 50.1 per cent to 55.3 per cent.

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