General Motors going through China to break India 0
As strange as it sounds, General Motors will be attempting to break the Indian market by going focusing on the Chinese auto market.
The American car giant is developing a car in China which is destined for India. India is one of the world’s leading emerging car markets. If they are to remain on top ahead of the likes of Toyota and Volkswagen, they need to really start become more dominant around India.
The Indian car market is an extremely difficult one to become successful in. Consumers are very picky about which vehicle to purchase. Pricing is also a major issue. Bringing production closer to the country will help lower the price a great deal.
Small cars have been popular in India since the automotive industry started. Plenty of foreign car makers are not able to deliver their own personality and style to match the needs of the Indian market. Cars that are produced for the market have to specific and dedicated to India. Many major car brands are struggling to make an impact. Indian consumers have not been convinced by foreign attempts.
Foreign makers combined have just 25 per cent of the Indian passenger car market, excluding Hyundai. That is quite a surprising figure considering the great amount of investment that has gone into each car brand. It may be strange to hear that the successful UK car market brands of Ford and Volkswagen are struggling.
General Motors India has seen their performance dipping in recent months. Even they are unable to show positive results on the car market, showing just how complex it is. Speaking on the difficulty within India, General Motors India President Lowell Paddock stated that “The Indian market has been incredibly difficult for us and for everybody else,”
General Motors have combined with SAIC MotorCorp Ltd, a Chinese auto company. Together they have developed the Sail, a compact vehicle due to go on sale next month in India. Their business in India will is shared 50/50.
Mr Paddock said “What (SAIC) bring to us is more of a regional focus and more of an emerging market focus. Sail is in some ways perhaps the first vehicle designed with primarily Asian customer requirements.”
If General Motors India is to succeed this time round, they need to take the same approach as Hyundai. They have developed vehicles which are perfectly suited to Indian consumers.