GM India on consolidation drive, targets 10% growth

Written by Yogima Seth | Shweta Bhanot | New Delhi, Mumbai | Updated: Sep 14 2009, 07:21am hrs
Having resolved its spare parts problem and with a new mini-car on the anvil, General Motors India is now looking at a bigger share of the passenger car market in India.

Earlier this year, Chevrolet customers had to face delays ranging between 12-15 days in availability of spare parts in India. But since the company shifted its spare parts business from Mumbai to Talegaon, the situation has improved considerably. The availability of spare parts was delayed in the initial months of this year. But after moving our parts distribution centre from Bombay to Talegaon, the company has been able to meet all demands on time, said Karl Slym, managing director, GM India, adding that all pending orders have also been completed.

He added that GM India is all set to launch its bigger sedan, Cruze, next month, followed by its much-talked about mini-car in January next year. The company plans to register a growth of 10% this year, over 65,702 units that the company sold in India in 2008.

A General Motors (GM) dealer in Kolkata, who is also a member of the Federation of Automobile Dealers Association (FADA), said, There was a lot of confusion over distribution of parts earlier, but today, any part can be made available within a weeks time.

However, this wasnt the case till some time back, when GM car owners in India had to wait for several days and, in some cases involving replacement of engine parts and body parts, even months to get their damaged parts repaired. This resulted in lower sales of the company vis--vis its counterparts Maruti Suzuki India and Hyundai Motor India.

All Maruti workshops in Delhi and NCR can make spare parts available in a days time due to their proximity with the companys plants in Gurgaon and Manesar.

Though GM dealers in Mumbai also claim that they face no problem in sourcing components from the company, largely due to proximity with the Talegaon plant, it takes several days in other cities.

Stephen DArcy, global head (automotive practices), PricewaterhouseCoopers, said spare parts distribution is a problem in India for most companies. For owners of international brands, either the parts are too expensive or the service level is inadequate, which leads to lower sales in India, he added.