GM to sell Chinese-designed compact Sail cars in India

General Motors (GM) has begun production of its first Chinese-designed car for the Indian market, a major step in the American automaker’s efforts to grow in a market where foreign companies have been struggling. Many of the world’s major car production companies have been unable to capture significant market shares in India due largely to their inability to sell at competitive prices. India has also shown a preference for small cars at lower prices. While the Society of Indian Automobile Manufacturers reported a 10% increase in overall car sales in the first six months of 2012, GM’s sales in India fell by 11% in the same period.
The compact Chinese-designed Sail by SAIC India Pvt Ltd., already sold elsewhere as a sedan and a hatchback, is scheduled to go on sale in India in October. SAIC India Pvt Ltd. is the Indian joint venture company GM established in partnership with SAIC Group.
Sail is in some ways the first vehicle designed with primarily Asian customers in mind, and GM wants to capture a higher market share in the Indian market through the new car. SAIC, which holds a 50% stake in the Indian unit, will begin production of a larger passenger van in India by the end of the year.
All foreign automakers combined, excluding Hyundai, account for less than 25% of the Indian market. This is in contrast to the situation in China, where GM and Volkswagen top the passenger vehicle market with a combined 30% share. (September 6, 2012)