General Motors’ Indian unit has asked the government to approve a six billion rupee ($US123.3 million) investment in new model launches, Reuters reported, citing a a top company official.
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“It’s a blanket approval that we have sought. The funds will be used for introducing new products in the future,” Aditya Vij, president of General Motors India Pvt Ltd, told Reuters.
The news agency said that, since 1995, GM has already invested close to three billion rupees in its plant at Halol in western Guajrat state which produces two Opel-designed models for India’s competitive mid-size car market.
General Motors India sold 8,012 cars last year, Reuters said, including 2,204 Astras at the upper end of the midsize market, 5,084 Corsas and 724 Swings (Corsa wagon) in the lower end of the same sector.
The company has set a growth target of 30 percent for 2002. Mid-size cars make up just about 15 percent of India’s nearly 600,000-a-year car market, Reuters added.
“General Motors has identified India as one of the key markets in Asia for investment. We are studying the specific areas of investment,” Vij told the news agency.
The company is considering importing the Opel Vectra sedan, Vij added.
“We have long term plans for the Indian market and to become an important player we need more products,” Vij told Reuters. GM had a less than two percent share of the domestic car market in the first 10 months of this financial year but was planning to launch one product every year for the next three years, he added.
