GM India launches Tavera Neo-3 BS IV
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India's fifth largest car-maker, General Motors (GM) India, is manufacturing fewer vehicles than the capacity in its two plants in Maharashtra and Gujarat because of a 'sluggish' market which the company feels will improve if there is a decrease in interest rates, which it sees as likely by the next three months .
The company launched Chevrolet Tavera Neo-3 BS IV on Thursday. "We plan to launch more variants of Sail and MPV. The Sail launch will come in June or July while our MPV variant will hit the markets by the end of this year," said P Balendran vice-president corporate affairs, GM India.
He said that the cut in production is due to a sluggish market and there is hope it will improve by June in case of a decrease in interest rates. Though the combined capacity of the company at its two plants at Halol in Gujarat and Talegaon in Maharashtra is 2.25 lakh, in the last calendar year the total vehicles manufactured and sold in the Indian market was only 1.11 lakh. With per month sales of the company in the range of 8,500 to 9,000 in the last two months, it is, however, in the process of building additional capacity of 25,000 at its Halol plant in Gujarat.
"We have already made an investment of over $1 billion dollars in India and have an employee base of around 4,500. At the Halol plant, the company has an annual capacity of 85,000 vehicles which is being raised to 1.10 lakh vehicles to introduce the light commercial vehicles," said Balendran.
The company hopes to grow its sales later this year expecting a slash in interest rates.
Balendran said that the demand of cars is heavily influenced by interest rates as majority of the buyers are ones who purchase vehicles on loan. "Nearly 85 per cent of vehicles are purchased on loans so the influence of interest rates is heavy on the industry," he said.
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