The Telegraph
Since 1st March, 1999
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GM wants hike in funding limit

Calcutta, March 15: General Motors India (GM) is planning to seek the government’s approval to increase its investment limit in the country.

Speaking to The Telegraph, GM’s spokesperson said the government has permitted the company to make investments worth Rs 1,380 crore.

Of this, General Motors has already invested over Rs 844 crore to set up a manufacturing unit at Halol in Gujarat.

The company is poised for another round of investment to double the plant’s capacity from 25,000 units per annum to 50,000 units, which will need another Rs 600 crore.

The company hopes to raise the capacity at Halol to 1.5 lakh units per annum over the next few years.

A good growth in sales figures has encouraged us to seek the government’s approval to raise our investment limit to Rs 1,600 crore, the spokesperson said.

GM, which has brands like Opel Astra and Opel Corsa, plans to launch a host of new brands in the next couple of years.

The spokesperson, however, refused to give details of the brands the company is planning to introduce.

However, he added that all the segments were being closely looked into and in the next one year, three-four new brands are certainly going to be launched one after another.

Earlier, at a press conference here today, general manager (sales) Sanjeev Garg said the company is mostly interested in the sports utility vehicle segment and a right brand in the right segment will be launched.

Garg, who was here to launch Opel Vectra, said the company has set a target to more than double its sales from last year’s 8600 units. The company has hopes to sell over 50,000 units within fiscal 2005.

Although, the majority of the sales are likely to come from the Opel Corsa segment, the company is optimistic about achieving a phenomenal growth through the products to be introduced soon.

GM is also looking at the possibility of a mass brand and if everything goes right, the company will bring in one of its various such brands to India.

“After China and a couple of other Asian countries, we are certainly keen on increasing our market share in India and the products are being planned that way to satisfy the customers,” Garg said.

GM, however, is unlikely to introduce any make from the Daewoo stable in Korea, which it took over last year.

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