At the Beat Diesel press conference, IndianAutosBlog.com asked the GM India management about their plans for the later half of the year. The management responded that GM India wants to become a key volumes player in India. In order to achieve that goal, a distinct plan has been established – to tap the semi urban and rural markets to maximize volumes with affordable cars.
If I am honest this is really a no-brainer considering Maruti Suzuki has already tried this strategy and it has worked for them. The tendency to think alike comes due to two important reasons – car sales in metro regions have shown a considerable drop owing to rising interest rates and many people in the rural areas don’t opt in for car loans and hence are less affected by interest rates fluctuations.
The company currently has 250 sales outlets and is planning to inaugurate another 50 by this year end. GM India currently sells 60 percent of its cars in the urban areas. With the new strategy the company wants to sell 70 percent of its cars in the rural areas. That is a paradigm shift in sales distribution.
GM plans to get there with two low cost vans, a mini lorry and affordable passenger cars. These vehicles will be brought in from China and fitted with diesel engines.
The company has set a target of 1.4 lakh units this year as compared to 1.1 lakh units last year. Rural areas will play a key role in making sure that GM India achieves its target.
Chevrolet India has bagged won three top awards in the India Automotive Initial Quality Study (IQS) and Vehicle Dependability Study (VDS) 2010 from one of the most prestigious automotive survey company – J D Power.
On the occasion, Chevrolet, P Balendran, Vice-President, General Motors India said
“These prestigious wins from J D Power clearly reiterate that Chevrolet has become the preferred automobile brand in terms of quality, dependability and customer delight. We will continue to leverage the momentum gained thus far and build on the inherent strengths of our products in the future also.”
Chevy Spark took home the awards for the Most Dependable Compact Car and the Best Compact Car in Initial Quality. This is the fourth time the Spark has won award for quality. On the other hand, Chevrolet Aveo U-VA wrapped the awards for the Most Dependable Car in the Premium Compact Car segment.
General Motors India has taken the Indian market very seriously with launches like the Chevrolet Beat and the Chevrolet Cruze to make its presence felt in India. Furthermore, GM India with its Chinese partner SAIC is readying a wide range of low-cost vehicles like a small car (Tata Nano rival), a low cost MPV and a number of LCVs for India.
With the market needing practical yet compact MPVs, a majority of car manufacturers in India are looking to launch new mini-MPVs and MPVs in the future. Hyundai is readying its ic25, a mini-MPV based on the i20 platform, Maruti would soon be launching a stylish mini-MPV based on the R3 concept it showcased at the 2010 Auto Expo, New Delhi, Mahindra is developing a mini-Xylo 5-seater MPV and looking to utilise the Logan platform to develop a mini-MPV next year and Ford could bring the Fusion replacement, the Ford B-Max mini-MPV in the future.
With competitors gearing up to launch mini-MPVs and gain a foothold in what could be one of the most lucrative segments in the Indian market in the coming years, we think GM India would have already chalked out plans for its contender. The most probable option for GM would be the Chevrolet Orlando MPV which is based on the same platform as the Chevrolet Cruze.
The Chevrolet Orlando is a 5-door compact MPV which can seat 7. With the Chevrolet Tavera being discontinued, chances of the Orlando filling in for the Tavera are very high. The Chevrolet Orlando could come with diesel engines and could compete against mini-MPVs like the Hyundai ic25, Maruti R3,Ford B-Max and MPVs like the Toyota Innova, Xylo and the forthcoming Nissan MPV.
General Motors India, along with its Chinese partners SAIC and Wuling, is developing a new range of LCVs for the Indian market. These low cost LCVs would be rolling out of GM India’s Halol plant by the end-2011. GM India would be investing 470 crore Rupees ($100 million) to produce these LCVs.
GM India’s new range of LCVs would be sold through a separate sales and distribution network and wouldn’t be distributed through the existing network for ‘Chevrolet’ badged passenger cars as the customers for GM’s LCVs would be entirely different form customers for the Chevrolets. Once the production of the LCVs begin, GM’s passenger car production would move to GM’s second plant at Talegaon.
Also the new range of commercial vehicles could get a new ‘Tavera’ badge. The Chevrolet Tavera is quite a popular name in the Indian market is a well known reliable cost-effective people mover and GM India using this name would cash in on the Tavera UV’s popularity.
Karl Slym, President, GM India
We will be investing $100 million in manufacturing LCVs in India next year. The investment needed in setting up a sales and distribution network would be separate. Together with new car launches and entry into LCVs, GM India sales should triple by 2012.
GM would be launching at least two LCVs in the sub-1 tonne and 1 tonne segment. These LCVs could come with small diesel engines and would compete with the likes of the Tata Ace and Mahindra Maxximo mini trucks. The company would roll out the 1 tonners first and then come with smaller versions to take on the Tata Penguin and Mahindra Gio.
Chevy Cruze – 300 Series Platform fueling growth for GM India
If we talk of growing trends, here is one that certainly happening. Car makers appear to be targeting tier II and tier III markets. We saw it in the case of Ford, which has just opened 13 dealerships in these markets. Now GM India is pursuing a strategy to improve sales in rural markets.
The Chinese will also be entering the Indian commercial and passenger vehicle markets by 2011. Recently, Shanghai Automotive Industrial Corporation (SAIC) took a 50% stake in GM India and will enter the Indian market in 2011.
The Chevrolet Beat keeping GM India busy
These are busy times for GM India. The company has announced that it would introduce a second shift at its Talegaon plant to meet the order book of Chevrolet Beat. The shift is being introduced as the Talegaon plant manufactures the Spark and the Beat and both these cars have received a good response in the market.
GM will also be introducing a third shift in their Halol plant which manufactures Aveo, Optra and Tavera to meet market demand. Here is an example of how different markets work.
The Camaro will be displayed at the Auto Expo next year
President and Managing Director of GM India Karl Slym told reporters in a recent meet that an array of vehicles will be displayed at the Auto Expo in Delhi next year.
Among the cars that will be showcased are the Volt, Camaro, Spark EV and Aveo CNG which will also be launched during the occasion.
GM will also launch the much awaited Beat hatchback during the Expo. Apart from these cars, GM could also spring a surprise by bringing an India-centric concept car, but that again is pure speculation.
A few weeks back, Karl Slym, MD of GM India hinted it, now its official. Old Opel cars like Astra and Corsa can now be traded-in for newer and cleaner Chevrolet models.
This comes as a customer loyalty initiative and is a Limited period offer. So, if you are an Opel owner wanting to get rid of your old car, here’s what you do.
Take the Opel to a GM dealership for an inspection. Upon inspection by certified engineers, the car will be evaluated and a selling price will be quoted. To make the trade-in easier on your pocket, GM has roped in many public and private sector banks to offer low EMI schemes for new Chevys. You will also be offered free accessories worth Rs 10,000 by the dealer as part of the Opel exchange program.
click through for press release
