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General Motors Co (GM) will sell Chinese-designed minivans under its Chevrolet brand in India starting next year as the automaker expands in Asia's second-fastest growing major economy.
GM, the world's largest automaker, will adapt two small commercial vehicle models currently being sold in China for the Indian market and sell them through Chevrolet dealerships, said Matthew Tsien, executive vice-president at GM's China unit, during an interview on Wednesday in Chengdu, in Southwest China's Sichuan province.
The Detroit-based automaker is expanding into India's commercial vehicle market as industry sales grew 27 percent in the year ended March.
GM, which entered the Indian market in 1994, will challenge Tata Motors Ltd, maker of the world's cheapest car, and Mahindra & Mahindra Ltd, which together account for 90 percent of light goods-carrying vehicle sales.
"The mini commercial vehicle market is quite large but GM does not participate today because there are no products," said Tsien, who is also vice-president at SAIC-GM-Wuling Automotive Co (SGMW), GM's minivan venture with SAIC Motor Corp.
"Having the SGMW products under the Chevrolet brand will give GM India a tremendous opportunity to serve that very significant segment."
GM will start by introducing in India small multipurpose vehicles similar to the Wuling HongGuang, a seven-seat van that comes in 1.2- and 1.4-liter variants, and the eight-seat Wuling Hongtu models sold in China and price them "competitively", Tsien said, declining to elaborate.
GM plans to target customers running small businesses and those in smaller cities and rural areas, he said. The company added diesel variants to the existing gasoline models and is converting the vehicles to right-hand drive to suit local needs, he said.
GM will begin by assembling the vehicles in India using kits made with Chinese and Indian parts and increase the use of local components over time, Tsien said.
"It's not going to be easy for GM to compete in the mini truck segment" in India, said Ammar Master, an analyst at automobile research company JD Power & Associates."Much will depend on price positioning and the operating costs of its vehicles, as these are the main purchase considerations in this space. We believe Tata Motors will continue to dominate the segment."
India's automakers sold 2.52 million passenger vehicles and 676,408 commercial vehicles in the domestic market in the year ended March, against 1.95 million passenger and 532,721commercial vehicles a year earlier, according to data from the Society of India Automobile Manufacturers.
Questions:
1. What company is targeting the Indian market?
2. What is their plan?
3. What are some of its challeges?
Answers:
1. General Motors Co.
2. GM will sell Chinese-designed minivans under its Chevrolet brand in India starting next year.
3. Tata Motors Ltd, maker of the world's cheapest car, and Mahindra & Mahindra Ltd, which together account for 90 percent of light goods-carrying vehicle sales.
（中國日報(bào)網(wǎng)英語點(diǎn)津 Helen 編輯）
About the broadcaster:
Nelly Min is an editor at China Daily with more than 10 years of experience as a newspaper editor and photographer. She has worked at major newspapers in the U.S., including the Los Angeles Times and the Detroit Free Press. She is also fluent in Korean.
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