General Motors India, the local arm of the world's largest carmaker, is expected to break even this year after eight years of operations. The parent is also pumping in Rs 600 crore (Rs 6 billion) into the subsidiary.
Aditya Vij, president and managing director, said, "The accumulated losses of GMI has been wiped off and we are infusing fresh investment of Rs 600 crore in the domestic operations. This year we expect to break even as well as double the turnover to Rs 1,000 crore (Rs 10 billion) from the current Rs 500 crore (Rs 5 billion)."
GM believes that the improved performance will be achieved through its new range of products, including the recently launched Chevrolet Optra, a D segment car, which offers more features at a competitive price.
Vij said, "Higher volumes cover overhead costs and Chevrolet Optra will rake in volumes for the company along with the recently launched Sail version of the Corsa. We expect to sell 5,500 units of the Optra this year."
Based on a new platform from GM Daewoo auto & technology, the Optra is manufactured at GM's Gujarat plant.
The company is planning to increase the headcount to over 800 from 500 and for the first time has started a second shift at its Halol facility, anticipating increased demand.
According to Sanjeev Garg, director-vehicle and parts sales, "The mid-size sedan market is growing in India. With the launch of Chevrolet Optra, the Opel Astra Club has been discontinued as it competes in similar price range."
Priced at Rs 824,000 ex-showroom, Mumbai, the Optra is positioned against the Skoda Octavia and, more importantly, the Toyota Corolla.
The company intends to continue to focus on cars under the Opel brand, which includes Astra, Corsa, Sail and Swing, while the newly introduced Chevrolet brand will be used for forays into newer segments.
The company also imports and sells Opel Vectra and Chevrolet Forester in the CBU form. The company plans to expand its dealerships to 45 as well increase its authorised service outlets across the country this year.