GM to expand vendor base, dealer network in India

Auto giant General Motors said on Monday it is planning to enhance its vendor base and increase the number of dealer outlets in India amid rising sales and the company deciding to start manufacturing light commercial vehicles from its mother plant at Halol in Gujarat by 2011 end.

"We plan to increase our dealership network to over 260 by end of this year against 200 odd now, and also intend to have 300 service centres across India," president and managing director of General Motors India Karl Slym told PTI on the sidelines of a function in Ahmedabad.

The Halol facility is projected to operate in three shifts to cater to production of LCV's and the automaker plans to hire new suppliers for it as well.

The facility at Halol has total production capacity of 85,000 units annually. GM has proposed to seperate its products from the joint venture in China with Sanghai Automotive Industry Corporation Group, and has chosen LCV's from that portfolio to be manufactured at Halol in Gujarat.

"The production of LCVs from the Halol plant is expected to commence by end of 2011," Slym said, adding, "By then we expect to have a vendor base of close to 200 from the exisiting 150 odd supplier now.

"The Halol plant has already begun operating in two shifts and is producing close to 72,000 units annually," director and vice president corporate affairs GM P Balendran said.

GM's car sales in India surged by a whopping 130 per cent in first quarter of this year over the corresponding period last year.

"We have sold around 9,421 units in January, 11,111 units in February and 11,324 units in March this year," Balendran said.

As part of company's initiative to switch over to alternate fuels, GM's facility in India is expected to roll out its electric car model -- Electric Spark -- by end of this year.

"We are going to roll Electric Spark by the end of this year in a controlled manner so that we take learnings from that and later on expand it," Slym said.

GM has a joint venture with REVA for manufacturing electronic cars.

"We have a potential of 5,000 cars annually to begin with, but it all depends on the governmental support," Slym said.

Slym said Chevrolet-Volt a battery operated car will be launched in the US by end of this year.