General Motors willing to pick up stake in India's largest automaker
marutiudyog.com
Sunday, November 14, 1999 (fe)
NEW DELHI: General Motors of the United States on Saturday said it was willing to pick up a stake in India's largest automaker, Maruti Udyog Ltd, if the government decides to sell its stake, reports AFP.
"The company's options are open if the government of India comes forward to dilute its 50 percent stake,", General Motor's President Richard Wagnor told reporters here. Japan's Suzuki Motors Corp, an equal partner in Maruti Udyog, has recently said it would prefer General Motors as an equity partner in the Indian company.
"The Indian subcontinent is an area of special focus for General Motors. India's automative industry is one of the most rapidly developing in the world. We want to be a major contributor to this development," Wagnor said. "With a population of one billion ... a fast-growing, highly educated middle-class and an economy that is growing at around six percent per year, the fundementals are definitely in place for strong industry growth in India.
"We think that the potential is staggering," he said. Wagnor also unveiled the company's latest model "Corsa" which would be launched early next year. R.C. Swando, general manager of General Motors India said the Corsa would be "competitively priced" along with products of Maruti, which currently holds 80 percent of India's automobile market.
Maruti's runaround 800cc model is India's largest selling car, but its 1,000cc Zen model and the upmarket Esteem have faced stiff competition from new entrants. India's car market was opened to foreign companies following economic reforms launched in 1991. |
