General Motors said on Tuesday it will conduct materials studies and conduct crash tests in southern India’s Bangalore, as it shifts research closer to Asia’s third-biggest economy to boost sales, Bloomberg News reported.
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The report said GM plans to hire 100 researchers in Bangalore over the next two years to develop light-weight materials, research on car electronics and conduct performance simulations, according to its executive director of science laboratories Alan Taub.
GM, which has less than 3% of India’s car market, is investing in research and development in China and India because it expects vehicle sales in the two markets to boom and lead growth in the Asia-Pacific region, Bloomberg News said.
“The dramatic reduction in product lead-time due to intense competition has placed great pressure on research and development,” General Motors India’s president Aditya Vij told the news agency at a press conference.
GM vice president John Devine reportedly said the company plans to expand sales in India using models from its South Korean unit GM-Daewoo Auto & Technology, as well as from its affiliate Suzuki, which has 50% of India’s car market and is Japan’s biggest maker of mini cars.
Those designs have to be modified to meet the preferences of Indian customers, Bloomberg News noted.
GM also sells Opel cars, Chevrolet-badged vehicles and sport-utility vehicles in India and, in February said it will invest $21 million for engineering research in Bangalore, Bloomberg News said.
The report added that the company will spend another $1 million on joint research with Wipro Ltd., India’s second-biggest software maker by market value and the Indian Institute of Science and Taub reportedly said the investment will be increased to “multi million dollars” without elaborating.
Bloomberg News said that, like Ford and Delphi, General Motors is also setting up research in India to take advantage of cheaper labour costs and skilled, English-speaking workers.
“There are qualitative advantages of doing research in India,” Taub told the news agency, adding: “With the explosion in growth of technology, General Motors has to grow its research capabilities and diversify its inputs. That is why we are in Bangalore.”
But the Indian research centre won’t result in job losses in the US, Taub told Bloomberg News, adding: “We are not outsourcing, we are only expanding. Because of that no jobs are being lost.”
