Amid slowdown in auto sales General Motors India today said it expects car sales to be in between 30-40 per cent during this year.
"So far we have witnessed a growth of 34 per cent and expect to close with a growth of 30-40 per cent by the end of December," General Motors India Managing Director Karl Slym told reporters on the sidelines of SIAM convention.
However, the industry expects growth in sales to be in single digit owing to rising interest rate and lack of consumer financing in the country. In last seven years Indian auto mobile industry has posted a growth of 13 per cent.
Increase in sales would help the company to grow its market share by a percentage point to four per cent, he said.
Last year the company, registered a growth of 74 per cent and had a market share of three per cent.
Besides, the company is planning to ramp up its dealership network to 200 by the end of December. Speaking about price pressure Slym said if input cost and fuel prices continue to rise it will have an impact on prices of models.
Most of the auto mobile manufacturers have exhausted all options of absorbing hike in input costs and movement in global commodity prices in future could lead to rise in prices of vehicles in the country.
Talking about investments in India he said the company would invest $300 million for its second car plant in Maharashtra and $200 million additional investment for its power train engine manufacturing at the same plant.
The company also plans to roll out its mini-car from its Maharashtra facility in the second half of 2009, he added.
