General Motors says it expects to triple its sales in India to 300,000 units over the next two years launching six new models into the market by 2013.
Karl Slym, president of GM India, said that the company also plans to source US$1bn worth of auto parts from India over the next two years, reflecting the growing trend of sourcing in India’s US$26bn component industry
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GM is one of a number of carmkers increasing their sourcing from India as rising cost pressures in their home markets drive them to source from countries that offer cheaper labour and parts.
Analysts believe this trend, combined with the country’s own rising demand, could grow the Indian auto component industry to US$113 bn by 2020.
Vehicle sales in India grew a record 31% last year driven by a burgeoning middle class, but tougher comparisons, rising interest rates and rising fuel and vehicles costs are expected to slow sales growth this year.
GM expects its sales in India to grow at double the pace of the industry this year which is expected to see growth of 12 to 15%.
Slym said: “Our growth outpaced the industry growth last year, we grew at 30%. We will surely outpace the market in 2011 as well.
GM launched in India 14 years ago and is targeting sales of 300,000 vehicles by 2013. It sold 110,000 vehicles in the country last year, roughly the same amount market leader Maruti Suzuki sells in a month.
Slym said that the company will launch four new cars and two commercial vehicles in India over the next two years. It currently sells the Chevrolet Beat, Spark and Tavera utility.
