GM to utilise India capacity for exports
For GM India, exports make strong sense as it currently utilises about 20 per cent of its installed capacity. GM's domestic volumes fell eight per cent to 80,890 units in FY’14 and are down 33 per cent in April-August FY’15 at 24,284 units.
General Motors (GM) hopes to use India as an export hub for markets like Australia and South America as it looks to utilise capacity amid slow domestic sales. GM India, which started exports this month with Chile currently operates two plants in Maharashtra and Gujarat with a combined annual installed capacity of 2.80 lakh units.
Stefan Jacoby, Executive Vice-President and President, GM International, said, “Australia is one of the options for exports from India, we are investigating this.” Last year, GM announced it would halt production in Australia, where it sells the Holden brand, by 2017, due to high costs and strong currency. Ford has already announced the same, and the only other manufacturer Toyota is expected to soon follow suit. With a market size of over one million units a year, this is seen as a big opportunity for Indian car exports.
Arvind Saxena, President and MD of GM India, said, “We had the first rollout for Chile. The next two markets we have identified are Mexico and Columbia for parts exports. This is an opportunity to show that we are able to make high-quality cars which are acceptable in other markets”.