Now that General Motors has escaped bankruptcy by allowing the US government to become its biggest shareholder, the company may finally be able to make a financial turn around. As a result of their partnership with Reva Electric Car Company, they recently announced plans to create a small and affordable electric car for India. Reva, which is based in Bangalore, India, is responsible for G-Wiz, the most popular electric car brand in the United Kingdom. Production on the new GM/Reva models designed for India will likely begin next year.
Though Reva sold its first electric car in India back in 2001, the partnership with GM will likely ensure the sales of large numbers of the new model. For one, Karl Slym, the president of GM’s India branch, has already stated that the company will be working closely with the government of India to implement an infrastructure of charging stations. In addition, the announcement for the model design coincidentally occurred the day after Ford went public with their plans to introduce the Ford Figo in India as a portion of a its $500m investment plan there.
GM will be competing with Ford in the small car sector of India’s economy, which makes up a startling 70% of the new vehicle market. With so much incentive and the opportunity to become less reliant on sales within the US, it is difficult to see GM’s project failing. Yet the question that remains is whether or not it will be enough for the once dominant car company to reclaim its place. What do you think?