General Motors has hived off its sales, marketing and distribution functions as a separate profit centre in India even as it expects slowdown in its sourcing of $1 billion worth of auto components from the country.

General Motors’ India President and Managing Director, Mr Karl Slym, told Business Line that half of the $1 billion worth of auto components have already been sourced from India but the rest of it will get delayed beyond the targeted 2010. “The timeline may get extended beyond 2010 but the value will remain the same,” Mr Slym said. This was because of the recession in the global auto industry, he said.

Good growth rate
Mr Slym said the Indian operations of the car maker will not be affected because of changes in the US operations of General Motors. “We don’t foresee any problems for the Indian operations because we are maintaining a good growth rate here,” he said.

In 2008, General Motors sold 65,702 car units, achieving a growth rate of 10 per cent over the previous year. It expects the same growth rate to be maintained during the current year too.