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.

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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”.

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