GM India November sales up 110 pc

[BusyBody]

NEW DELHI: Car maker General Motors India on Saturday reported a whopping 110 per cent jump in its domestic sales during November at 5,356 units against 2,554 units in the same month last year.

The sales comprised 1,703 units of MUV Chevrolet Tavera, 1,670 units of sedan and hatchback Chevrolet Aveo and Aveo U-VA, 557 units of the luxury sedan Chevrolet Optra and 1,426 units of its small car Chevrolet Spark, GM said in a statement.

"The consistent surge in monthly sales is a clear indication of the success of all our carlines and demonstrates the fact that our flagship brand Chevrolet has been well accepted by the market and is growing from strength to strength," GM India Vice President P Balendran said.
http://economictimes.indiatimes.com/...ow/2587762.cms

[Sacred]

Does anyone knowwhat gm's market share in india is? I have trouble believing that in such a populous country 60k cars a year is a very large percent of the market share?

[paul8488]

Not sure about India, but I know in 2006 fewer cars were sold in China than in the US, despite the huge Chinese population. The overall car market in India is just starting to grow now, so 60,000 is probably a bigger percentage than we think.

[AndrewGS]

[sarcasm]I'm sure it's all to fleets.[/sarcasm]

[Sacred]

Originally Posted by paul8488

Not sure about India, but I know in 2006 fewer cars were sold in China than in the US, despite the huge Chinese population. The overall car market in India is just starting to grow now, so 60,000 is probably a bigger percentage than we think.

While I realize that India's economy is just starting to industrialize and grow to a point where the average person can afford things like a car, they have a population of 1.13b people according to https://www.cia.gov/library/publicat.../print/in.html . That means 1 person in 18800 bought a new car from gm in the past month which seem rediculously low to me for their market share to be anything substantial. Honestly if their market share is that low maybe they should be looking to leverage their global capital and acquire a large Indian manufacturer as a way to play catch up quickly. Similar to how GM has enter markets (australia, europe, korea etc.) in the past this would allow them to cheaply enter what will inevitably be one of the largest automotive markets in the future before it becomes too expensive and competitive. Plus I'm sure within 4-5 years they can phase in GM platforms and further drive down developement costs per vehicle.

Oddly instead GM is looking to tie up with Russian and Malaysian automaker which are currently based in countries with less than investor friendly governments and which do not have populations to support as large of a market.

Proton I suppose could allow for more cheap capacity for Daewoo but OAO Avtovaz simply seems like a poor choice compared to a large Indian automaker considering GM already has a strong market presence in Russia and ample capacity in near proximity.

[Psionic Wibbly]

From what i've read, the total paseenger vehicle market in india is roughly 1 million (dunno whether this is for 2006 or projected for 2007; more likely the latter)

of this Suzuki Motors, (which sells under the brand name of Maruti) controls over 50% market share. the next largest are Hyundai and Tata motors (the same company that is one of the 2 remaining bidders for Jaguar/land rover).

it is too late now for GM to try and buy an indian firm. they already had a substantial stake in Suzuki which they decided to sell off at a time when it was one of their only sources of profits)

the other indian car manufacturers (Tata motors and Mahindra motors) are just too big and too powerful for GM to try and buy. in fact any of these 2 is more than capable of swallowing GM lock, stock and barrel without even a hiccup.

[Sacred]

With revenue of 5.4bln and profits of 337mln in 2006 I seriously doubt Tata Motors could buy GM. For comparison suzuki, which GM owned a significant portion of, had 26.4 bln in revenue and 561mln in profits during the same time period. Its fairly obvious that comparitivly Tata Motors is much smaller than suzuki and poses little to no threat in acquiring GM. Hyundai Did around 60bln in sales and made a profit of 2.3 bln in 2005 but according to thier websit thier 2006 income was down 35% so it would seem financially they were not able to buy GM and they will not be able to if the trend continues. Just for comparison GM had 207.4bln in revenue in 2006. While they may not have profitable it's obvious that any of these smaller companies would have a hell of a time buying out GM unless thier market value continued to tank at this rate (ie 40% in a month or two). At that point I seriously doubt any of these companies would want to buy GM for any reason other than to part it out as they do not have the capital to turn GM around.


Sources:
http://www.hoovers.com/tata-motors/-...actsheet.xhtml
http://www.hoovers.com/suzuki-motor/...actsheet.xhtml
http://www.hoovers.com/company-infor...actsheet.xhtml
http://ir.hyundai-motor.com/eng/comm...cial_year.html

[Psionic Wibbly]

thtas an interesting website: i've been loking for something similar but this is the first time that i have found something that gives so much info about companies around the world.

i did not realise that tata motors was not that big; however i did get confused with the tata group of companies which i thought was one and the same; however i now gather that there are about 20 or so corportaions all under the tata umbrella but each being a separate company. (more or less like mitsubishi in japan)

i fact one could say that it is a mitsubishi of india as they have their fingers in every pie

http://www.hoovers.com/free/search/s...13&search_y=10

besides the ones listed there are several dozen or so smaller companies as well that carry the tata name.

"The Tata Group comprises 96 companies in seven business sectors. 65.8% of the ownership of Tata Group is held by the charitable trust of Tata."

http://en.wikipedia.org/wiki/Tata_Group

[Sacred]

That's interesting I had no idea that tata motors was part of such a large entity. I still doubt theycould move on a company the size of gm by themselves though.

[Psionic Wibbly]

Originally Posted by Sacred

That's interesting I had no idea that tata motors was part of such a large entity. I still doubt theycould move on a company the size of gm by themselves though.

They couldn't and wouldn't. but neither is GM capable of moving in on TATA motors. the TATA enitity is a far more profitable conglomerate worlwide than is the GM group.