General Motors India said automobile industry is expected to grow by two percent in this financial year. In the year 2012, the company has sold 92,435 units across the country which depicted a 17 percent decline in sales as compared to the vehicles sold in 2011. The company phased out Optra (sedan), Aveo (mid-sized sedan) and U-VA (hatchback) resulting in decline in sales.
"Last year (2011-12), in the beginning, we (industry) all thought that the market is likely to grow somewhere around 12-14 percent. By the time the year got close, the growth was somewhere around only two per cent," General Motors India, Vice-President P Balendran. "But this year, we should be able to register growth in tandem with the market", he said.
The company plans to launch its first multipurpose vehicle ‘Enjoy’ by the end of March or April which is competitively priced. The company hopes to sell 48,000 units of its latest sedan ‘Sail’ which comes with a price tag of Rs 4.99 lakh (ex-showroom Chennai) and Sail U-VA (hatchback) per annum in the domestic market.
"The market continues to remain sluggish. It is expected to improve only when the interest rates comes down. As far as my expectation is concerned, the market is expected to improve only after the budget, so in the second quarter," he said.
The General Motors Halol facility in Gujrat is undergoing “capacity expansion” in order to introduce the LCVs (light commercial vehicles) in India. On completion, it would have a capacity to hold 1.10 lakh units.