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| GM to expand used car business over five-fold |
| Press Trust of India / Jaipur Jun 14, 2009, 15:49 IST |
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At a time when General Motors India is facing difficulties in raising funds to complete its engine plant, the company will expand its used-car business by over five-fold across the country this year.
The wholly-owned subsidiary of the bankrupt US car giant General Motors will increase its outlets of pre-owned cars -- Chevrolet-OK -- to 50 by year-end from the existing 11.
Besides, the company will also expand its regular dealership network to 250 outlets by the end of this financial year from the current strength of 203 dealers.
"We would be extending the same 3-year/one lakh km warranty to used-car owners as well. Though we have not set target for used-cars, but the sale of used cars should not be less than 40 per cent of the new car sales at an outlet," GM India President and Managing Director Karl Slym said.
The cars offered through these outlets would go through a 110-point checklist by GM India trained engineers, a besides a detailed history check, he added.
Earlier this month GM Group Vice-President Nick Reilly had said the Indian operations of the company was facing difficulties in raising major portion of $200 million fund, earmarked for the engine plant in Talegaon, Maharashtra.
Besides, GM India is planning to increase its dealership network in the rural and semi-urban areas across the country.
"At present, we have 203 outlets across the country. We would cross 250 mark by the end of this fiscal. Of these outlets, majority would come up in rural and semi urban areas," he said.
He said that the rural penetration would help company maintain last year's growth of about 10 per cent despite GM India's sales falling in the first five months of this year.
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