General Motors India is focussing on improving efficiency in its operations and exports to reduce losses and overcome stress on its financial viability and future sustainability due to the tough market conditions.
"The business environment is very challenging. No doubt about it. Many other OEMS are also under stress in the current market situation where volumes are under stress," General Motors India President & Managing Director Arvind Saxena said.
Saxena, who had joined the company earlier this year from Volkswagen India, further said: "And because of volumes, everything else, financial viability and future sustainability are also under stress."
Highlighting the immediate task in hand, Saxena said: "We need products, we need a clear cut strategy to be here in the market. That's what we are trying to work out today. The immediate plan is to work a long term sustainable business for GM here. We are losing money, we would like to contain that and look at a plan on how do we make it more sustainable for us."
While he declined to comment on the financials of the company, GM India has reportedly accumulated a loss of Rs 2,740 crore so far in its nearly two decades of existence in India.
Saxena said the focus is on how to optimise both on the revenue side and the cost side and create a momentum in the organisation.
Asserting that GM has no plans to wind up from India, he said: "There is a clear mandate from our senior global leadership that we have very strong view that India is a very important market in the GM overall plan. While volume is still small right now but going forward, we do expect and recognise the future potential of this market."
He further said: "You cannot afford to exit a market (India), which is slated to be the number three market in the world. You cannot service this market by importing from outside...So, we have been here for many years and we will be here for many more years...The key is that we have to find answers and how to sustain our business."
Saxena also said with India predominantly being a small car market at present, "making money is very challenging and not very easy" but as the market evolves to the next level of cars, it would become more sustainable.
Elaborating on the steps taken up by the company to overcome the challenges, he said: "The first is exports. We