General Motors India has achieved break-even and become a profitable company, a top company official said, according to the Hindu Business Line.

“We are a profitable company now which was not the case last year,” GM India president and managing director Aditya Vij told reporters after the company launched its Chevrolet Tavera multi-utility vehicle (MUV).

The report said General Motors secured permission to enter India in 1994, launched its first product in June 1996 and floated the fully-owned subsidiary in 1998.

Launching the Tavera, GM India noted that between 2002 and 2003, the segment grew by 47 %, and is projected to grow at a compounded annual rate of 20 % between 2002 and 2008.

GM India reportedly plans to sell 10,000 units of the Tavera in 2004-05. It sold 15,155 vehicles in 2003-04 and this year is aiming for close to 30,000 units.

According to the report, the capacity of the company’s Halol plant in Gujarat will be expanded to 50,000 units per year during 2004-05 from the present level of 33,000.