General Motors to expand used car operations

General Motors India, which has been selling re-conditioned second-hand cars for the past five months, announced that it will expand its used car operations soon. The company, follows the footsteps of rival Ford India into the second-hand car market. Ford had launched its second-hand car program under the brand name "Ford Assured", much earlier than GM India.

The announcement of the expansion of the second-hand car services was made by Mr. Aditya Vij, president and managing director of the company, at the launch of variants of its models, Corsa and Astra, at Chennai. The two new variants are the Corsa Royale and the Astra Club 2001.

According to Mr. Vij, the company, which has an installed capacity of rolling out 12,700 cars on a single-shift basis, plans to sell 3,300 Astras and 7,500 Corsas this calendar year, compared to around 7,100 cars of combined sales during calendar 2000

The new model Corsa Royale is equipped with exquisite interiors and root-wood dashboard panels in addition to spoilers, alloy wheels, leather steering and an optional sunroof.

Similarly, the new Astra variant – Astra 2001 – too has several new features. But the most interesting among them is the 'Multi-Intelligence Digital Display', first of its kind in the segment, providing the customer with information on average fuel consumption, average speed over a distance, radio control information and range etc.

He also said the company has cut costs of its spares by nearly 20-35 per cent by efficient worldwide sourcing and increased localisation of its components. According to Mr. Vij, General Motors India has achieved a component localisation level of 72 per cent for the Astra and 60 per cent for the Corsa.

"This has been one of the reasons why the price hike for our cars was nominal as compared to other players in the market," he remarked. He also pointed out that a reduction in the costs of its spare parts would eventually bring down the ownership and maintenance cost of both our models.

Mr. Vij stated that the company's plans of introducing new models hinge on the outline of the proposed auto policy. In order to improve its reach, the company will be increasing its dealership network from the present level of 34 to 44 by this year-end. Similarly, the company would also double its authorised service outlets to 46.

When asked whether the six-year-old company is meeting its export commitments made at the time of setting up its business, Mr. Vij, while confirming that the company had met its obligations, refused to give any detailed figures on the grounds that GM India is a closely-held company.