General Motors India has created a new company to handle sales, marketing and distribution - General Motors (India) Marketing.

As a part of a restructuring and realignment of its corporate structure, the automaker is transferring its sales, marketing and distribution activities to the new firm while all manufacturing activities will remain with General Motors (India).

GM India vice president P Balendran said: "With GM's operations in India expanding significantly in size and scale, it has become necessary to bring greater focus and efficiency to selling and distributing our world-class products and services.

"This move will help us improve planning, inventory management, transport management, timely delivery and thus, maximise cost synergies."

The formation of the new company followed the start of production at GM India's new plant at Talegaon last week.

The restructuring, which is expected to result in "significant" cost efficiencies, will also involve the transfer of some employees to the new company.

GM is expanding its retail network in India with 122 sales points and 129 service outlets already operational. .It plans to have at least 145 sales points and 160 service outlets by the end of this year.

Now with two manufacturing facilities at Halol, Gujarat and Talegaon in Maharashtra state, GM makes the Chevrolet Tavera, Optra, Aveo, Aveo U-VA, SRV, Spark and Captiva for the local market.