General Motors Corp. plans to ramp up production and sales in India, one of the world's fastest-growing auto markets, the company's chair said yesterday as he introduced the tiny Chevy Spark to Indian customers.
GM is also scaling up procurement of low-cost auto components from India to lower costs at its plants in other parts of the world, chair and chief executive Rick Wagoner said.
Japanese and Korean car makers such as Suzuki Motor Corp. and Hyundai Motor Co. have done much better than their American counterparts with small and compact cars that dominate Indian roads. GM and Ford haven't seen much success because of pricing.
The Spark faces tough competition from Hyundai's Santro and Alto & the WagonR from Suzuki-controlled Maruti Udyog Ltd, India's largest car maker.
Both Maruti and Hyundai have a network of sales and service centres, and a much larger production capacity than GM would have even a year from now.
But Wagoner said GM's focus on India goes beyond market share.
Asia will account for 70 per cent of the growth in global car sales over the next decade, Wagoner said. And India is set to become the second fastest-growing automotive market after China.
"It is also important that half of this country's population ... is below 25," he added. "That is a lot of potential for future car buyers.''
GM is also scaling up procurement of low-cost auto components from India to lower costs at its plants in other parts of the world, chair and chief executive Rick Wagoner said.
Japanese and Korean car makers such as Suzuki Motor Corp. and Hyundai Motor Co. have done much better than their American counterparts with small and compact cars that dominate Indian roads. GM and Ford haven't seen much success because of pricing.
The Spark faces tough competition from Hyundai's Santro and Alto & the WagonR from Suzuki-controlled Maruti Udyog Ltd, India's largest car maker.
Both Maruti and Hyundai have a network of sales and service centres, and a much larger production capacity than GM would have even a year from now.
But Wagoner said GM's focus on India goes beyond market share.
Asia will account for 70 per cent of the growth in global car sales over the next decade, Wagoner said. And India is set to become the second fastest-growing automotive market after China.
"It is also important that half of this country's population ... is below 25," he added. "That is a lot of potential for future car buyers.''
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