This will be followed by the entire new “Beat” family – hatchback successor of today’s and all-new notchback, which will be attractive. He was also ready to embark on a trip to Brazil, where the company is expected to make announcements this week related to the Brazil and India investments that will tie into the newly announced project. But in a market that grew 3.9% in FY15, General Motors India posted a decline of 35% to sell just 51,839 units in the domestic market, nearly half what it sold at its peak in FY11. “If someone decides to stay back till June 2016, he or she would either be eased off with a month’s pay or transferred to the company’s Talegaon plant near Pune”.
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India is clearly shining the bright among emerging market darkness. Currently, about 75 percent of its models are derived from 14 core architectures.
The new small cars will be produced in existing plants that will be retooled for the new, low-cost architecture, and will include a range of different body styles. The company has not only sketched out $1 billion investment plan for India, but is also consolidating its business.
GM has a market share of 1.8 per cent in India and is the eighth-largest player here. The company will not introduce these models in mature markets like the U.S. Otherwise, the carmaker is at risk of killing many new drivers. The company believes those markets as too hard to make a strong return on the investment or too risky as in the case of Russian Federation. The latest series of Chevrolet vehicles will be built with similar components, and are expected to roll out at a rate of around 2 million vehicles per year. All things considered, that’s pretty massive. That means they must predict how a patchwork of regulations and consumer tastes in markets around the world could converge in the next decade.
It’s certainly not out of the question.
“It’s our view that over the next 15 to 20 years that majority of growth will take place outside mature markets and in these growth markets”, Ammann said.
“We are making clear where we see growth opportunities and where we are placing our bets”.
GM’s plan calls for the single new platform to replace a cluttered network of vehicles it now markets. GM had earlier recalled 114,000 units of its sports utility vehicle, Tavera, in July 2013.
GM has earmarked approximately $5 billion for the project, which represents another important step in the automaker’s previously stated platform consolidation plan.
The cars are being developed by a multinational team of engineers who will tailor entries to local preferences.
Unlike the biggest economies of Asia-Japan and China-India has until now had limited success at becoming an export powerhouse. A high level of localization of parts suppliers should drive significant savings over the life of the program.
GM president Dan Ammann told Wall Street Journal: “It starts with what we call a profound understanding of the customer…”
Maharashtra Industries Minister Subhash Desai said: “GM’s decision to expand its Talegaon site proves Maharashtra is the preferred investment destination for global players”.
