American automaker General Motors and one of the world’s largest car making behemoths is increasingly finding the going uphill in India. The automaker established a presence in India as early as 1995. That General Motors has spent nearly 2 decades in one of the world’s most promising auto markets but is yet to break out of the 2 % market share does not make a pretty picture. A change in tack is the need of the day and winds of change seem to be already blowing. General Motors India is mulling a compact sedan based on the Gamma platform, an all-new Beat hatchback and a big push on the exports front.
This three pronged strategy will kick in ahead of 2017, the year that will mark the arrival of the automaker’s much talked about Amber platform, designed for emerging markets of the world. The sub-4 meter compact sedan space is bringing in the big numbers, what with over 30,000 cars selling in this very segment each month. This ever expanding segment will will see the launch of no less than 4 all-new cars over the next couple of years. With General Motors seeking a share of this growing pie, a Gamma II platform based compact sedan could keep the automaker’s showrooms busy until a new crop of big volume vehicles arrive. The compact sedan is said to be code-named MCM.
The Gamma II platform hosts the likes of the Chevrolet Spark (Beat in India) and the Sail cars. As the automaker is already making use of the Gamma II platform on multiple cars sold in India, adapting this platform for the India-specific compact sedan makes sense. The Gamma II platform will also be used to underpin the next-generation Beat hatchback, which has already been spotted testing abroad, and that is expected to arrive into India sometime in 2016. The international launch of the next-generation Beat will happen next year.
General Motors also plans to increase its exports from India. The automaker is planning to export 3 out of every 10 cars that are built in India. A 30 % exports number is likely to help General Motors help cut losses from its Indian operation. As things stand currently, General Motors India has a whopping 6,552 crore rupee loss on its books. Yet, the automaker is betting on the long term potential of India and staying back in the country. GM’s latest three pronged strategy to stay in the black represents its latest stab at success in India.