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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.
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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.
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