GM cars in India soon to become more local than ever

General Motors India, the Indian unit of US based leading car maker, is aiming to use as much as 90 percent localized content in the manufacturing of its cars in the Indian market. The plans of using localized content includes both its commercial and passenger vehicles. Using more than 90 percent localized content in the production of its cars in the Indian market will certainly boost the demand for auto-parts in the country which in turn will benefit the local suppliers and manufacturers of auto-parts.

At present, the company sources mere 60 percent of components for the production of its passenger cars in the Indian market. Mr Karl Slym, president and managing director of the company has recently stated that when the company launches commercial vehicles, localisation rate would be 90% and that would mean purchasing and making everything in India. He added that in next two years, GM India would reach that mark in passenger cars. Some components are just not available in India and existing contracts need to expire before looking at local suppliers.

The company is now focusing on strengthening its auto-component supplier's base and manufacturing capabilities in the Indian market. It is going to start the production at its engine plant from November this year, where it has invested heavily ($200 million) in the last few months. The prospective engine plant will have a manufacturing capacity of more than 3,00,000 units and will roll-out both diesel as well as petrol power-trains.  The company is planning to launch a diesel version of its popular compact-hatchback Chevrolet Beat in the Indian market by the last quarter of this year. Both diesel and petrol engines for this car will be supplied from this plant.