General Motors eyes India as next manufacturing hub
Even after 18 years of prolonged presence in India, General Motors still stands in a loss making state, but the American automaker is now preparing for a makeover in the country, claims a latest report. GM will make India as its new global manufacturing and export hub, taking some of the strain off its current hub- South Korea, where the labour costs have surged in recent years.
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Alongside the manufacturing push, company’s strategic plan also includes some newly designed subcompact cars for the country as well. Within the next decade, General Motors aspires to grab at least 5 percent market share in India, as it sees a great potential here, and predicts it overtaking Japan as the world's third biggest with projected annual sales of 8 million vehicles in next 10 years.
Despite a stagnant trend witnessed for the past few years in the Indian auto market, Jacoby still sees that changing with Prime Minister Narendra Modi, who took the reins last year, vowing to reboot Asia's third-largest economy.
"India has gained back confidence," especially after Modi's election, said the 57-year-old, who joined GM from Volvo Cars in 2013. "We're pretty optimistic. We see growth potential in India, and believe there's a good opportunity for the Chevrolet brand to take share in this market. There's more prosperity and buying power. Vehicles selling for $5,000-$8,000 will more and more disappear in India."
Source: Reuters
