GM India sales decline 7% for Jan 2013: Expects to break-even by 2017
General Motors India sold 7,588 cars in the domestic market for the month of January 2013, which is a decline by 7.33%, compared to the 8,189 cars sold in 2012. The US car maker has been operating in India since 1995 and is yet to financially break-even.
During 2012, General Motors India sales touched 92,435 units in domestic markets. This was down 17% as compared to sales during 2011. Three products of the company were phased out. These included the Optra sedan, the midsized Aveo and U-VA hatchback. However, a new MPV Enjoy is scheduled for launch by end of March or early April and the company has just launched its new entry level sedan Sail for a starting price of INR 4.99 lakhs. Of these two new vehicles the company expects sales of around 48,000 units per annum.
The passenger car market continues on a sluggish note and General Motors in particular and the auto sector in general are eagerly awaiting the Union Budget, post which they expect a revival. Earlier today, Anil Mehrotra, GM India CFO, revealed to PTI that the company expects to financially break-even in the next 4 years. ”Our operations in the country are not profitable at the moment. We hope to break even in two to four years time. We are planning a good growth in the current year. We expect to grow between 40 per cent to 50 per cent with the launch of SAIL sedan and multi-purpose vehicle Chevrolet Enjoy (to be launched in three months),” Anil added.