Mexican Media Brands
GM Aims to Turn a Profit in India by 2020
The head of General Motors Co.'s operations in India tells Reuters the 20-year-old unit expects to generate a profit in five years, thanks to cost cuts and efforts to increase local content in the vehicles it makes.
#economics
Share
The head of General Motors Co.'s operations in India tells Reuters the 20-year-old unit expects to generate a profit in five years, thanks to cost cuts and efforts to increase local content in the vehicles it makes.
GM said in July it plans to invest $1 billion in India to introduce new products there and turn the country into an export hub. To increase its current 2% market share, GM needs to establish a "more sustainable and committed business" in India, says Managing Director Arvind Saxena.
He tells Reuters that GM India has reduced the cost of renting space for its headquarters in Mumbai 50% by moving to another part of the city. The company intends to introduce 10 new domestically assembled vehicles in India by 2020. By then it also aims to hike local content to 70% from considerably lower levels today.
Until India's sluggish car market accelerates, Saxena says, GM India will attempt to boost exports. Reuters notes the unit hopes to ship 20,000 vehicles this year and 40,000 in 2016.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.