Report - GM India to start exporting Beat to Latin America this year

Following the consolidation of international operations in November 2013, American car maker General Motors's Indian subsidiary is being considered as a future global sourcing base for compact vehicles.

The report on Economic Times says GM India has frozen a plan to integrate exports into its business for the first time in its 18-year stint.

GM India's top official confirmed to IAB on the sidelines of the Beat facelift's launch that exports would begin later in the year, but stopped short of sharing specifics. ET has learned that exports kick off this year with the Chevrolet Beat hatchback. The first market is Chile, followed by Mexico, Peru and the Caribbean in 2015.

Earlier on, two LHD prototypes of the Beat were spotted testing near GM's Talegoan plant.

A consignment of 2,000 to 2,500 units of Beat will be exported this year to Chile and in a couple of years, about 20 percent of the production (33,000 units) out of Talegaon would be for overseas market, the report adds. Mexico, one of the biggest export markets for Ford India, is pipped to be GM's biggest contributor taking 12,000 - 24,000 units.

The low volumes in the Indian market has compelled the company to look at an export strategy. Similarly Volkswagen, which lacked an export arm at the time of the Chakan plant's launch in 2009, evolved the strategy and exports almost 30 percent of the production.

In the bygone fiscal, GM has used only about 40 percent of its capacity in Talegoan and Halol, and the export volumes would come as a relief, the report says.