Interview:

We believe in delivering a complete value package to our consumers: Karl Slym

General Motors India is all set to enter the Light Commercial Vehicle market by FY 2011-12 in one and sub one tonne categories. They will also introduce two other passenger cars by that time, in a joint venture with SAIC (Shanghai Automotive Industry Corporation). The LCVs will be produced at the Halol facility in Gujarat, while the passenger vehicles will be manufactured at the Talegaon plant in Maharashtra. Karlos Slym, President and M D, General Motors, India shared some of his plans with BE’s Priyalina Basu in this regard.

Q) In India, General Motors sales have increased 45% this July. What have been the reasons for this?

A) There are a number of factors working behind this sales growth. However, I would like to say there are two major factors that attributed to this. First, is the growing demand of Indian customers, especially for Chevrolet Spark and Beat and secondly, the development of the brand image of Chevrolet.

Q) What is the present market trend? Are people investing on luxury cars?

A) Yes, investments in some segments of luxury cars have increased. SUVs like Chevrolet Captive are in high demand. However, it is also important that the demand for light commercial vehicles in India is likely to rise by 24% in next 3-4 years.

Q) What are your export plans? Would you go for increasing market shares or your target will be to increase sales volume?

A) We are planning to export the Beat and products manufactured in the SAIC and we will be looking to increase sales volume rather than market share because on market share basis, we are already in a good position.

Q) For export, which market would you be concentrating on?

A) Right now, we are concentrating mainly in the Asia-Pacific region, especially in the four neighbouring countries- Nepal, Bhutan, Bangladesh and Sri Lanka for the next 12 months. Then we will think of expanding to the ASEAN nations and Latin American countries.

Q) Have you ever nurtured the idea of selling INR1 lakh car like Tata to capture small income group customers?

A) No, we have not, because we believe in delivering a complete value package to our consumers, which include safety and comfort rather than the price. But I think the Chevrolet Spark and Beat in the INR 3-4.5 lakh ranges will be helpful for the small income group customers.

Copyright@ Business Economics, August 1 2010