General Motors India is planning to tap the buying potential of the people in smaller towns and cities to boost its sales. The auto maker feels that there is demand for passenger vehicles in smaller towns and cities, but the demand does not always meet the supply, as majority of the companies concentrate on bigger cities. Thus, the company is planning to open 50 new outlets in smaller towns and tier III cities in the year 2011.
General Motors India, President and Managing Director, Mr. Karl Slym, told the Economic Times that the company has on cards to expand its presence in smaller towns. This would help it minimize the effect of the slowdown which hit the Indian auto industry in the second quarter of the 2011.
Mr. Slym further stated that at present the company has 250 outlets across the country and though few years back 60% of the car sales for the company came from metros and 40% from non metros, the trend is now fast changing. With deeper penetration in smaller cities, the company expects its sales generated from smaller cities to go as high as 70%.
The company which sold 1,10,000 cars in India in 2010, aims to sell a minimum of 1,40,000 units in the year 2011.
