New Delhi: US car maker General Motors Corp. said on Monday it has created a separate firm for sales and distribution in India as part of restructuring its corporate structure.
“As a part of the restructuring and realignment of its corporate structure, GM India is transferring its sales, marketing and distribution activities to the new entity, while all manufacturing activities will remain with General Motors (India),” the company said in a statement.
Branching out: A file photo of Richard Wagoner, chairman and chief executive officer of GM Corp. Jeffrey Sauger/Bloomberg
Formation of the new entity—General Motors (India) Marketing Pvt. Ltd—comes close on the heels of the US car firm stepping up its investment in India with plans to pump in $200 million (Rs886 crore) at Talegaon in Maharashtra, to set up a power train facility. Power train is the system that transfers power from the engine to the wheels in an automobile.
“With GM’s operations in India expanding significantly in size and scale, it has become necessary to bring greater focus and efficiency to selling and distributing our world-class products and services,” GM India vice-president P. Balendran said. The move would help GM improve planning, inventory management and management, timely delivery and maximize cost synergies, he added.
The restructuring exercise would also involve transfer of some employees engaged in sales, marketing and distribution to the new company, the company’s statement said.
GM India is expanding its sales points to 145 and service outlets to 160 by the end of this year. It currently has 122 sales points and 129 service outlets across the country. The company had last week opened its second factory, set up at an investment of $300 million, at Talegaon that has a capacity to produce 140,000 units every year.
The engine plant that the company plans to build will have an annual capacity of 160,000 that could be expanded to 300,000 engines a year. The firm has a factory in Halol, Gujarat, with a capacity to make 85,000 cars a year. The company makes Tavera, Optra, Aveo, Aveo U-VA, SRV, Spark and Captiva for the Indian market.