GM to expand vendor base and dealer network in India

Auto giant General Motors today said it is planning to enhance its vendor base and increase the number of dealer outlets in India amid rising sales and the company deciding to start manufacturing Light Commercial Vehicles (LCV's) from its mother plant at Halol in Gujarat by 2011 end.

"We plan to increase our dealership network to over 260 by end of this year against 200 odd now, and also intend to have 300 service centres across India," President and Managing Director of General Motors India Karl Slym told PTI on the sidelines of a function here.

The Halol facility is projected to operate in three shifts to cater to production of LCV's and the automaker plans to hire new suppliers for it as well.

The facility at Halol has total production capacity of 85,000 units annually.

GM has proposed to seperate its products from the joint venture in China with Shanghai Automotive Industry Corporation Group (SAICG), and has chosen LCV's from that portfolio to be manufactured at Halol in Gujarat.

"The production of LCVs from the Halol plant is expected to commence by end of 2011," Slym said adding "By then we expect to have a vendor base of close to 200 from the exisiting 150 odd supplier now."

"The Halol plant has already begun operating in two shifts and is producing close to 72,000 units annually," Director and Vice President Corporate Affairs GM P Balendran said.