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General Motors eyes motor plant in India

General Motors (NYSE: GM) logoAs soon as General Motors (NYSE: GM) installed Karl Slym as head of GM India, the new leader announced that the country may become the home to a new engine manufacturing facility for the automaker. The purpose: to build more engines for all those future sales that should be happening with the growing Indian middle class, and capture more vehicle builds made with in-country engines instead of imported GM engines from other global plants.

According to Slym, the automaker was looking at possible locations and investment amounts of a possible plant, which would assist GM with domestic (Indian) as well as export demand. Most of GM's products sold in India run on imported engines (except for the Tavera multi-utility vehicle), and with India continuing to grow as a marketplace for almost any imaginable consumer good, the time may be right for GM to lock down a site and get an engine plant built inside the country to service all those future sales needs.

Slym also indicated that he's considering evaluating richer nameplates like Buick and Cadillac (perhaps even Hummer) into India for sale. Right now, GM's India focus is not on higher-tier brands like those just mentioned. But, Slym said, "If there is a business case and a market to do so, then yes," in relation to bringing the brands to Indian consumers. Presently, GM's core holdings in India in terms of sales are in the smaller-car segment, similar to GM's focus in China.

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Last updated: November 24, 2009: 11:48 AM

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