General Motors to Concentrate on Small Cars

General Motors India is thinking of concentrating more on the small car segment. Compare to the mid-size cars, the Chevrolet small cars are making good sales in India. Now the car manufacturer has decided to sell more small cars compared to mid-size and executive sedans and high-end SUVs.

For instance, the mid size Optra's market share fell from 12.6 percent to 3.04 percent from April 2008 to February 2009.

The car manufacturers are experiencing good growth in the small car segment and therefore continue to focus on them. Chevrolet Spark, one of the popular cars from its stable saw a growth of 4.14 percent in February 2009 against 3.65 percent in April 2008.

According to auto industry analysts, GM has moved its focus in view of the fact that 75 per cent of India's passenger car market is dominated by compact cars. The car manufacturer is now concentrating at the volume rather than the value aspect in order to push the sales.