Indian Prime Minister Narendra Modi’s dream project Make-in-India has prompted General Motors Company (NYSE:GM) to invest in India and make it a manufacturing hub in the near future. The automotive giant plans to achieve at least 5% stake in the Indian Automotive market over the next ten years considering its swift pace towards becoming the third biggest market in the world by 2025.
As per the reports, India will replace Japan as the world’s third largest automotive market with 8 million annual sales in the next ten years. General Motors has been running its operations in India for more than 18 years, but still its recent performance has not been up to the mark. The company has lost a lot of market share and sales to its competitors. Even after this type of performance, it plans to revamp its manufacturing activities in India from a new angle and grab a bigger market share in the future.
The company is planning to cut down its manufacturing activities in South Korea to invest in India. General Motors states that the labor cost in South Korea has elevated to all new level in the recent past, which has made it difficult for the company to continue its operations there. It will announce its strategic plan to run operations in India by the end of the current year. It is also planning to introduce newly designed subcompact cars in India, which will give more amenities to users.
According to Stefan Jacoby, Chief International Officer, General Motors Company (NYSE:GM), when it comes to automotive industry, India may be the last big white sheet of paper for all the companies. The Indian automotive sector has grown steadily over the past few years with sales of little over 3 million cars annually. But, with Prime Minister Narendra Modi’s Make-in-India vision it will become the largest automotive market in Asia in the near future, which is something General Motor is excited about.