General Motors is planning to capture 5% of the car market in India as it expects the annual sales in the country to rise to eight million vehicles by 2025.
The Detroit based automaker aims to make India the new global manufacturing and export hub to take advantage of cheap labor cost in the country.
Presently, most of the manufacturing is being done in South Korea and according to some analysts, the company managed to produce 630,000 vehicles last year, with a capacity utilization rate of around 75%, which is too low to be profitable.
The company is also developing a strategic plan for the country, and is likely to launch newly designed subcompact cars for the country where customers are shifting from basic models to modern cars with more functionality and room, reported Reuters.
The company aims to sell 400,000 vehicles a year in India by 2025, which is a huge leap when compared to its present sales.
