The much sought link between General Motors and SAIC of China has kindled the hope of getting better yields in the Indian car market. For the JV, India is a unique country with lot of potential and it will not be on par BRIC nations, said the President of GM International Operations. BRIC (Brazil, Russia, India and China) may soon become the target markets for the car market. GM senses the Indian market resulted out of its launch of Chevrolet Beat [images]at Rs3.5 lakhs along with Spark [“>images] which too brings in fame for GM in India. GM is now on a JV with the Chinese SAIC and Wuling for promoting LCVs in India in which the Wuling pick ups will face the acid test during their launch in 2011. Also in the list is the stream of passenger vehicles. GM says for it the launching pad is more crucial than the overseas market and India proves to be a dearth for so many opportunities. SAIC’s Chinese experience will enhance the execution in India, as GM has the tradition of 4-tier structure in the country.
The Chinese market has an organized set up- luxury cars meet the demands of Shanghai and Beijing, Wuling trucks meet the expectations of other parts of the country suiting the less cost and less purchase power. GM has just revived from its recession and it will be best via media for North America, Europe and other new markets. GM conducted a leadership meet in Shanghai represented by Russia, India, China, Africa and West Asia for sorting out different business strategies for each area. GM China’s President disclosed that GM intends to expand its activities wherever possible in other regions making the ally with FAW group(First Auto Works) specializing on trucks.
The regions targeted thus are Europe, Latin America and West Asia. In all GM is eyeing on its long term goal of global base for CVs. The tie-up with SAIC will no way affect its prospects in Indian operations, said the official. GM plans to complete the production of 2million vehicles in China by this calendar year and this strategy may apply for India too. As for GM, India would finish in the Top 10 countries once the JV with SAIC goes on full swing.