General Motors expects to make its Indian operations profitable in a period of five years as it works to cuts costs and increases the amount of locally-produced content of its vehicles.
That much is according to managing director of GM India Arvind Saxena, who told Reuters in an interview that, “In the next five years, I should definitely make it to a green balance sheet.”
GM has been operating in India for two decades, selling small Chevrolet vehicles. During that time, the automaker’s sales have fallen, causing it to be unprofitable in the market. In the year to March, GM has posted a loss of 38.5 billion rupees ($581 million) in India.
Saxena is part of the new management team at GM India, which include a new Chief Operations Officer, Vice President Of Sales, and Vice President Of Marketing And Customer Experience.
The importance of India for carmakers is undeniable, as the market is expected to be the third largest in the world by 2020. Sales of passenger cars in India rose 5 percent for the year through the end of March, but global automakers such as Renault, GM, Volkswagen, and Ford all reported double-digit declines in sales. Maruti Suzuki and Hyundai Motor were able to capitalize on the rising sales.