The sluggish market wouldn’t stop GM India from launching new models, P Balendran, vice president of corporate affairs, said, after the launch of the locally built diesel Chevrolet Cruze.
In September-October, a new Sail and an MPV called the Enjoy will arrive.
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“Unless you create an excitement in the market, you won’t survive there. We launch these cars with a long-term perspective keeping in mind,” Balendran said.
“The automotive market in the country is down now. Interest rates, petroleum prices, commodity prices and inflation are high now and these are affecting the market. Eighty five per cent of the car sales in the country is financed and till the time interest rates remain high, the market will not improve. In fact, we expect the market to improve only during the Diwali season,” Balendaran said, according to The Times of India.
The industry was expecting to grow by 10 – 12% in calendar year 2012, but with present market conditions, the growth would be limited to the 6-8% range, Balendran said.
GM sold 110,000 cars in India last year and expects only a 2% growth in sales this year. The company currently has 279 sales points and 272 authorised service centres nationwide, which will rise to 300 by the end of this year.
The company has a manufacturing capacity of 250,000 cars a year between its two plants in Gujarat and Maharashtra. It employs 4,500 people in four locations.
