General Motors to Make India its Manufacturing Hub

Published By : 06 May 2015 | Published By : QYRESEARCH

India seems to be the new destination for the American car manufacturing giant, General Motors (GM). The company is targeting a market share of 5% in India during the span of next ten years. The carmaker cut down its operations in Thailand, and closed its units in Indonesia and Australia to strategize capturing more market share in India. With the entry of GM in the automobile sector in India, the country will overtake Japan to become one of the largest vehicle manufacturing hubs. 

As the labor cost in South Korea has plummeted over the last five years, the auto manufacturer wants to capitalize the comparatively low labor costs in India and make the country its manufacturing and exporting hub. According to Stephen Jacoby, the chief of GM’s international operations, the labor unions in Korea had become a big challenge for the company. The company sees India as a favorable place to execute its new business strategies. 

Though GM has been operating in India for the past 18 years, it has suffered losses through its India operations. The company aims to launch new car models- the Spin multi-purpose van and the Trailblazer SUV, to increase its sales in India. Also, efforts are being targeted to make the company manufactured cars affordable to the Indian consumers. GM is following the trend set by its competitors Nissan and Ford who have made such strategy shifts to India, especially after the new government launched a number of campaigns to make the international manufacturers see India as an investment destination. 
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