GM India aims to double sales by 2013

US car maker, General Motors India is aiming to double its annual volumes to 2,00,000 units in the next one year, with the launch of three new cars including the Sail U-VA hatchback it launched on Friday. 

Over the next two to three months, GM will also be launching Sail sedan and Enjoy MPV. All three new cars fall in the fastest growing segment of the slowing Indian passenger car market, says the company. 

Vikas Jain, director sales, General Motors India told ET, "We will be gaining market share in the next one year. Today Rs 4 lakh - 10 lakh is a sweet spot in the market. Diesel is a sweet spot and even Utility Vehicle is a sweet spot. And all three of our new offerings fall in this category." 

The Sail U-VA hatchback will be pitted against Maruti Suzuki Swift, Hyundai i20, Toyota Liva, Honda Brio and Ford Figo amongst others. It is positioned in premium hatchback category, which constitutes to about 20-22% or 40,000 to 45,000 units a month of the passenger vehicle sales per month. 

Maruti Suzuki sells about 15,000 units of Swift every month and Hyundai about 7,000 units of i20, GM is hoping to garner at least 8-10% of premium hatchback space, with an eye on selling about 4,000 units every month. 

Jain said, "The entry of new model has only expanded the segment and today it is one of the fastest growing segment in the passenger car space. We hope to garner a sizeable pie of that space." 

General Motors India sold 1,11, 510 units in 2011 versus 1,10,804 units it sold in 2010. So far in 2012, the company has sold close to 80,000 units. 

Jain said, the market is likely to grow by 1-2% this year however the new models will help the company outgrow the market. "We have been doubling our sales every three years, but with three car launches, we should be doubling our sales in one year itself." 

The target is still off the mark of 3, 00,000 units it intended to touch by 2013, which was announced in 2010. The company says since announcing the target, the overall market has tumbled to flattish to single digit growth and GM too has been a victim of this slowdown. And plus, these target numbers included light commercial vehicle volumes, which has been put on hold right now.

Also read: Chevrolet Sail UVA launched at Rs 4.44 lakh