General Motors India, the 100 per cent subsidiary of the world's largest vehicle manufacturer, has achieved break-even and become a profitable company, a top company official said on Monday.
"We are a profitable company now which was not the case last year," GM India President and Managing Director Aditya Vij told reporters after the company launched its multi-utility vehicle Chevrolet Tavera in Bangalore.
General Motors, which secured permission to enter India in 1994, launched its first product in June 1996 and floated the fully-owned subsidiary in 1998.
Vij indicated that GM India would invest Rs 180 crore (Rs 1.80 billion) in the current financial year. "We have invested Rs 1,200 crore (Rs 12 billion) so far in India and it would go up to Rs 1,380 crore (Rs 13.80 billion) by the end of the year."
A company official said no decision has been taken regarding where the additional investment would head. "It could be for expansion or existing programme or launching new variants...it depends on requirements."
GM India has targeted to sell 10,000 units of Tavera in 2004-05.
The company sold a total of 15,155 units in 2003-04 and this year it is targeting close to 30,000 units, Vij said.
According to him, the capacity of the company's Halol plant in Gujarat would be expanded to 50,000 units per year during 2004-05 from the present level of 33,000.
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