GM to enjoy more mkt share with new MPV 'Chevrolet Enjoy'

After a rough ride last year 2013 has brought in some pace for General Motors (GM). Not only has the American car major seen strong sales of its Chevrolet sail sedan launched earlier this year, and a pickup in demand for the hatchback version. However, now the company is also working on a three pronged strategy to hike its market share, reports CNBC-TV18’s Sunanda Jayaseelan.

Also read : BMW likely to get Rs 650cr showcause notice from I-T dept GM India is hoping that this new MPV (multi-purpose vehicle), the Chevrolet Enjoy, launched today will help it to do well and enjoy more market shares. With a starting price of Rs 5.49 lakhs for the petrol version, the Enjoy is almost Rs. 70,000 cheaper than its nearest competitor, Maruti's Ertiga. Along with strong sales for the sail sedan, is what GM is banking on for a smoother road ahead, which is one part of a three pronged strategy to help it regain market share. GM wants to focus more on growth from rural areas. We learn that GM India, which gets about 30 percent of total sales from rural India now, wants to double it. Also increase distributors and service centers outside metros. The auto major will also increase road shows to reach areas where it doesn’t have dealerships. It will be pushing finance schemes for its products in an effort to almost double its market share in India by the end of the year. This is not an easy task given its current 5-percent market share. P Balendran, vice-president, General Motors India said, "Last year we sold about 92,435 units and again 100,000 units was sold in the previous year. So that means 2012 has not been good for us. However, one has to understand that we have phased out 3 vehicles in 2012, including Optra and Aveo." Despite its aggressive plans for the year, GM says it is not looking at any capacity addition at its plants. Future investments will depend on market conditions.